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ITC's demerger move a way to ring fence against hostile takeovers
Recently, the ITC Board announced its approval to demerge its hotels' business into a separate company called ITC Hotels Ltd. As per the de-merger scheme, ITC will hold 40 per cent stake in ITC Hotels while the remaining 60 per cent will be held by other shareholders.
Is 40% stake in ITC Hotels Ltd a downer or a boost for ITC scrip?
With 40 per cent stake in ITC Hotels Ltd – the hotel company, ITC is expected to fund a sizable amount of the capex needed for the hotel business, analysts said.
Why markets don't favour much-anticipated demerger of ITC's hotel biz
“Although the demerger was eagerly anticipated in the market, one concern is that ITC will still retain a 40 per cent stake in the new company (ITC Hotels Ltd)," Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers, said.
Analyst firms bullish on ITC, revises target price to Rs 565, citing strong long-term upside potential
Broking and investment firm JM Financial has maintained a positive sentiment on ITC with a price target of Rs 565 as it foresees huge potential in the FMCG businesses of the company which will get unlocked in the years to come.
Demerger of ITC's hotels business positive as it allays concerns about capital allocation
To note, the company had flagged its decision to explore alternate structures for its hotels business in its FY20 annual report, which was subsequently delayed by the pandemic. The proposed reorganisation will ensure continued interest of the company in the hospitality business, provide long-term stability and strategic support to the new entity, and support sustained value creation by also enabling leverage of synergies, the report said.
ITC Board accords in-principle approval to demerge hotels business into a new entity
In the meeting, the Board noted that the Company's Hotels Business has matured over the years and is well poised to chart its own growth path as a separate entity in the fast- growing hospitality industry with sharper focus on the business and an optimal capital structure, whilst continuing to leverage ITC's institutional strengths, brand equity and goodwill.
Government issues clarification on input tax, levy of tax on subsidiary company's shares
In a circular issued by the Central Board of Indirect Taxes (CBIC), it was clarified that in respect of common input services procured by the head office from a third party but attributable to both head office and branch offices or exclusively to one or more branch offices, the head office has the option to distribute input tax credit (ITC) in respect of such common input services.
Corporates need to be responsibly competitive and lead in climate action: Sanjiv Puri
This report marks two decades of sustainability reporting for ITC. The company’s innovative business models have positioned it as the sole enterprise worldwide, comparable in size and scope, to have achieved and maintained the three crucial global environmental sustainability indices.
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