ITC Limited has announced the demerger of its hotel business, ITC Hotels, effective January 6, 2025. Shareholders will receive one share of ITC Hotels for every ten shares of ITC they own, with ITC retaining a 40% stake in the hotel business. The demerger aims to enhance shareholder value by allowing ITC to focus on its core businesses while enabling ITC Hotels to independently pursue growth in the hospitality sector. Analysts predict ITC Hotels shares might list between ₹150-₹300, with potential for a 15-30% increase from the listing price. The hotel chain, currently operating 140 hotels, plans to expand to over 200 by 2030, capitalizing on favorable market conditions like high demand and low supply. This strategic move is expected to improve ITC’s return on capital employed by reallocating capital from the hotel sector. Discussions highlight the demerger’s benefits for both entities, with ITC Hotels seen as having significant growth potential due to its financial health, including zero debt and substantial cash reserves.