ITC’s shareholders approved the plan to separate or demerge the hotel business, Reuters reported.

Delhi’s ITC Maurya has fed presidents, princes and pop stars.(ITC Maurya)

About 99.6% of the company’s minority shareholders voted in favour of the move, exceeding the regulatory requirement of a three-fourth majority.

3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore the latest updates here!

Also Read | Rahul Gandhi portfolio: How Congress leader’s stocks performed as market plunged. Details

As per media reports, proxy advisory firms Stakeholders Empowerment Services (SES) and InGovern Research Services last month asked shareholders to support the demerger proposal, while Institutional Investor Advisory Services (IiAS) opposed the move, the article read.

“ITC must provide greater clarity with respect to the size of the synergies it expects to get by maintaining the 40% equity in the hotels business,” IiAS said a voting advisory note, referring to the stake that the company will hold in ITC Hotels, the newly formed entity. ITC shareholders will own the remaining stake.

The hotels business contributed 4% to ITC’s revenue during the financial year 2023-24, while its mainstay consumer staples business made up 71% of its revenue, according to the article.

Also Read | Gurugram: Power outages force residents of Ardee City to shift to hotels

ITC announced the demerger plan in July last year and later said that the new entity would be tentatively listed in 15 months.

The company’s shares closed 1.2% higher today after the announcement.

Disclaimer: This report is auto-generated from other news portal services. Realtimeindia holds no responsibility for its content.