It would depend upon “control” i.e. the management of Hotels business are independent then possible no consolidation would be required. Other non-financial support i.e. loan/LC/Land Lease etc if all not not material between the two companies they should be able to stand the test regards consolidation. My guess Hotel company would have to pay royalty on ITC brand and is the where the trick would be – ITC would like to keep control on ops to protect brand identity where control test may fail. The last word on this not out as yet and therefore the market does not like it.
Disc: Invested
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