Actually it does not matter what is the share entitlement ratio and let me explain you why. See, this is a demerger where all the shareholders of ITC will have direct and indirect 100% economic ownership in the new ITC Hotels business. So what the company is doing is that they are demerging the ITC Hotels into a separate wholly owned subsidiary.
ITC s hotel business has a stronger balance sheet compared to Indian Hotels, making a divestment of ITC s balance stake more valuable according to Chakri Lokapriya, CIO & MD, TCG AMC. While ITC will continue to hold a 40% stake, the new hotel business will have a cleaner balance sheet and royalties-like arrangements with other brands. Despite being at a multi-quarter low, Laurus Labs management is confident about maintaining its FY24 guidance.