ITC Demerger Drama: A Party-Spoiler for Investors
The Morning Brief
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The Importance of Demerging a Company
I think it's imprudent to call it a demerger. This is just in my opinion, an accounting jugglery because ITC still has control. The main board of ITC would end up controlling the so-called demerge entity. You have technically reduced the voting power of the three largest shareholders - BAT, LIC, and SUTI. So you have disempowered the minority shareholder. And somewhere you know that you might still have to continue to deploy capital as hospitality is such a capital intensive business.
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