Indian conglomerate ITC is planning to list its hotels business ITC Hotels in the next six to nine months, a report by the Economic Times said, citing people familiar with the matter.

The report further stated that the next course of action is likely to be taken in a board meeting which is slated to be held on August 14.

ITC however did not comment on its decision to list ITC hotels in the next to six to nine months. The conglomerate cited an intimation to the stock exchanges from July 24 that states that the scheme of arrangement shall be placed for approval of the board at its next meeting to be convened on August 14.

The intimation to the bourses states that appropriate announcements and public disclosures in accordance with the Securities and Exchange Board of India’s listing regulations and other applicable laws will be made as necessary.

The Board of ITC Limited granted in-principle approval for the demerger of the hotels business under a scheme of arrangement, the company said in a regulatory filing on July 24.

The proposed restructuring would pave the way for the hotel business to operate as a separate entity in the rapidly expanding hospitality industry, focusing on its growth path with an optimal capital structure.

Market participants were hoping for a split mirroring the shareholding pattern. ITC has decided to withhold 40 percent of the newly-carved-out hotel company, and distribute only 60 percent to shareholders.

Markets have been gung-ho about the de-merger because the hotels business has been a drag in ITC’s books. Since hotels are a capital-intensive business, it has always delivered significantly lower return on capital than ITC’s other businesses.

Investors have been excited about the possibility of a demerger so they have the option of staying with ITC’s high-returns businesses, without having to necessarily stay with a business that yields sub-optimal returns.