ITC getting ready to hive off hotels business

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Tobacco-to-hospitality conglomerate ITC is looking at finalising the long-standing proposal for demerging its hotels business, which it had shelved during the pandemic. As per sources, “Process for the demerger of hotel business is underway. It will explore alternative structures in line with the industry dynamics. Further its being said that a separate listing of the hotel division is being considered. Earlier, ITC Chairman and Managing Director Sanjiv Puri had said the demerger of the hotel business is “very much on the table.” Due to this development, the stock of ITC had touched a record high of 480.65 as the stock has gained 40 per cent this year and more than 60 per cent in one year. But brokers believe that the stock can show an upside of about 30 per cent from the current level. Jefferies has given a target of Rs 620 on this stock in the bull case, which is about 30 percent above the closing of Rs 475 on July 5

HDFC looks at promoter offer for 2 Radisson Blu hotels HDFC is studying a one-time settlement (OTS) offer from promoter D P Jain on the sale of two Radisson Blu hotels in Ghaziabad. The lender has received an offer of Rs 315 crore from the promoter, while Prudent ARC has submitted a binding offer of Rs 311 crore, according to a report in The Economic Times. The total outstanding loan for the hotel properties amounts to Rs 507 crore. On June 26, Prudent ARC’s initial offer of Rs 311 crore triggered a Swiss challenge but no bidder expressed interest in the auction. Prudent ARC’s all-cash offer would result in a 61 per cent recovery for HDFC, which merged with HDFC Bank on July 1.

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