ITC board approves demerger of hotel business; the share price falls 4%

In a significant corporate development, the ITC Limited board has given the green light to demerge its hotel business. The decision is aimed at unlocking the true potential of the FMCG and Hotels segments, promoting focused growth strategies.

However, market reaction was mixed, as the news led to a 4% drop in ITC's share price. Investors were concerned about the immediate impact of the demerger and wanted more clarity on the future prospects of the demerged entities.

Despite the initial market reaction, ITC's management remains optimistic about the long-term benefits of this strategic move. As the demerger plan unfolds, the company aims to leverage its strengths, deliver enhanced value to shareholders and ensure continued growth in an evolving business landscape.