Diversified Indian conglomerate ITC has confirmed 1 January 2025 as the effective date for the demerger of its hotel business with all approvals now in place.

The announcement follows the receipt of approval from the National Company Law Tribunal (NCLT), which the company disclosed to shareholders in an exchange filing.

In the filing, the company said: "The company has received a certified copy of the order dated 4 October 2024 issued by the Hon’ble National Company Law Tribunal, Kolkata Bench, sanctioning the scheme of arrangement amongst ITC Limited and ITC Hotels Limited and their respective shareholders and creditors under Sections 230 to 232 read with the other applicable provisions of the Companies Act, 2013 (Scheme); copy of the said order was received by the company on 16 December 2024."

The company's shareholders showed overwhelming support for the demerger in June, with 99.6% voting in favour and a mere 0.4% opposing.

The company’s board had initially approved the strategic move in August 2023. Under the proposed arrangement, ITC would retain a 40% stake in the new entity, while its shareholders would own the remaining 60% and receive one share of the business for every ten shares they currently own in the company.

In May, the Competition Commission of India approved the demerger of ITC's hotel business into ITC Hotels.

ITC's hotel segment reported growth in revenue for the fourth quarter of the financial year 2024.

The segment's revenue saw a year-on-year increase of 15.6% to Rs29.89bn ($351.8m) while EBITDA rose by 26.2% to Rs10.49bn.

This growth was attributed to robust RevPar performance across retail, MICE, and marquee events.