ITC’s board has approved a demerger plan for its hotel business, where shareholders will receive one share in the upcoming hotel entity for every 10 shares they hold in ITC. The demerger, subject to necessary approvals, aims to list the hotel business as a separate entity within 15 months. ITC shareholders will retain about 60% ownership in the new entity, with the remaining 40% held by ITC. Despite contributing only 2% of EBIT, the hotel division’s revenue doubled to Rs 2,689 crore in FY23. ITC believes the demerger will enhance value creation and align the hotel business with market dynamics.