ITC shares adjust after hotels biz demerger

New Delhi, Jan 6 (PTI) ITC shares settled at Rs 455.60 on the NSE at the end of a special session on Monday for the price discovery of its hotels business.

At the BSE, it settled at Rs 455. Demerger of ITC’s hotel business came into effect from January 1, 2025, and the record date for shareholders was January 6, 2025.

As per the scheme, ITC Hotel is separated from the parent entity.

“Most-awaited ITC demerger gets price discovery at Rs 455.60 and Rs 27 adjusted towards ITC Hotel based on previous closing during the special pre-open session. Discovery price of ITC Hotel was in-line with our expectations.

“Now ITC shareholders get 1 share of ITC Hotels for every 10 held of ITC.

As per the index demerger listing rules, ITC Hotels will be part of index and will be excluded from indices 3 business days after its listing date (if there are no circuit breakers). ITC Hotels’ demerger is expected to unlock substantial shareholder value and enable the newly formed company to focus on growth in the luxury hospitality sector,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

The BSE and NSE conducted a special trading session to discover the price for ITC hotels business post demerger.

As per the demerger scheme, ITC shareholders whose names will appear in the list of shareholders on January 6 will receive “one share of ITC Hotels for every 10 shares of ITC”, according to a regulatory filing from the Kolkata-based conglomerate on December 31, 2024.

“Overall, existing ITC shareholders will hold 100 per cent of ITC Hotels, i.e. about 60 per cent directly and a balance of about 40 per cent through their shareholding in ITC,” it said.