ITC Hotels Demerger: Demerger of hotel business failing to please investors, will there be any major impact on the stock?

ITC Hotels Demerger: ITC shares closed down over 4 per cent on Monday, July 24. The company has announced the demerger of its hotel business. Although it is not completely separating it. ITC will hold 40% stake in the new company. The company’s shares are reported to have declined as investors are disappointed over the lack of a full divestment of the hotel business. The market was expecting a split on the shareholding pattern. ITC, as part of its demerger plan, has decided to retain 40 per cent stake in the new hotel company and distribute the remaining 60 per cent to its shareholders.