ITC-EIH Deal: ITC has bought 2.44% stake in luxury hospitality company EIH Ltd, while buying 0.53% share capital in HLV Ltd. The shares for the stake were bought from Russel Credit, a subsidiary of ITC. While EIH is a company of the Oberoi Group, HLV is a company of The Leela Mumbai. EIH's 2.44% stake is equivalent to over 1.5 crore equity shares and HLV's 0.53% equity is equivalent to 34.60 lakh equity shares.

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Hotel business will separate

This move comes after Kolkata-based group ITC, which has businesses in different sectors, announced the demerger of its hotel business. The company has fixed January 6, 2025 as the record date for the demerger of the hotel business.

Shares will be allotted

ITC said in a regulatory filing last Wednesday that the company and ITC Hotels Limited (ITCHL) have fixed Monday, January 6, 2025, as the record date for the purpose of determining the shareholders of this company who will be allotted equity shares of ITCHL.

Earlier this week, ITC had announced that all approvals have been received and now the demerger of ITC Hotels will be effective from January 1, 2025.

It was announced last year

ITC stressed that its hotel business has matured and is now ready to chart its growth path as a separate unit with a focused business approach and special capital structure.

The company announced its plan to split its hotel business into a separate entity in August 2023. Under this split plan, ITC will hold a 40% stake in ITC Hotels.