ITC Hotels Demerger: ITC Price Adjusts to ₹455.6, Nomura Expects ₹200-₹300 Listing Range

ITC’s share price adjusted to ₹455.6 following the demerger of its hotels business. Shareholders will receive one ITC Hotels share for every 10 ITC shares held. Analysts predict ITC Hotels’ listing price could range between ₹150-₹300, with market cap estimates varying from ₹42,500 crore to ₹62,200 crore.

 

CONTENTS:

ITC Share Price Adjusts ₹27 Lower Post Hotels Business Demerger: Buy or Sell?

ITC Hotels Demerger: ITC Price Adjusts to ₹455.6 After Special Pre-Open Session

 

 

ITC Hotels Demerger: ITC Price Adjusts to ₹455.6, Nomura Expects ₹200-₹300 Listing Range

ITC Share Price Adjusts ₹27 Lower Post Hotels Business Demerger: Buy or Sell?

ITC Shares Trade Ex-Demerger

ITC Hotels Demerger: ITC Price Adjusts to ₹455.6 ITC shares experienced an adjustment of approximately ₹27 or 5.6%, trading at ₹455 on the BSE and ₹455.60 on the NSE after the hotels business demerger. This adjustment reflects the separation of ITC Hotels from the parent company.

During a special pre-open session on January 6, conducted by the NSE and BSE from 9:00 AM to 9:45 AM, ITC Hotels’ share price was determined. Post-discovery, normal trading for ITC shares resumed at 10:00 AM.

The ITC Hotels share price will be calculated as the difference between ITC’s closing price on January 3 and the opening price discovered during the special session. These shares will maintain a constant price in indices until their standalone listing date, after which they will be excluded three business days later.

 

Should You Invest in ITC?
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, recommends holding ITC shares. He advises investors to add more shares in the ₹430-₹450 range while maintaining a strict stop-loss of ₹400.

For new investors, Dongre suggests buying on dips within the same range, anticipating a near-term target of ₹480. A further breakout above ₹480 on a closing basis could push the stock to ₹520.

 

Demerger Details
The ITC Hotels demerger record date is January 6, 2025, with an effective date of January 1, 2025. The demerger ratio is 1:10, meaning shareholders will receive one ITC Hotels share for every 10 ITC shares held.

ITC Hotels will initially appear as the 51st Nifty 50 constituent and the 31st in the Sensex. Its weight in indices will remain constant until live trading begins post-listing, which is yet to be announced.

 

ITC Hotels Demerger: ITC Price Adjusts to ₹455.6 After Special Pre-Open Session

ITC Hotels Demerger: ITC Price Adjusts to ₹455.6 Following the special pre-open session for price discovery, ITC Ltd’s share price was set at ₹455, a drop of ₹27 or 5.6% from the previous session’s close. This adjustment reflects the spin-off of ITC Hotels from the cigarettes-to-FMCG conglomerate.

 

ITC Hotels Listing Details
Under the demerger terms, ITC shareholders will receive one ITC Hotels share for every 10 ITC shares held. ITC will retain a 40% stake in the new entity, while the remaining 60% will be distributed proportionately among existing ITC shareholders.

ITC Hotels shares will remain in NSE and BSE indices at a constant price until three business days post-listing. Any circuit-limit hits will extend the exclusion by two additional trading days per instance. Investors, however, cannot trade the dummy version of ITC Hotels shares before their official listing.

 

Expected Listing Price
Market analysts have varying predictions for ITC Hotels’ listing price:

• Nuvama Institutional Equities: ₹150-175 per share
• Nomura: ₹200-300 per share, with a potential market capitalization of ₹42,500 crore to ₹62,200 crore.
• Sharekhan: ₹150-170 per share, suggesting a potential premium valuation due to better price discovery post-listing.

 

The adjustment in ITC’s share price incorporates its 40% stake in ITC Hotels, with an approximate 20% holding discount, aligning with Nuvama’s earlier expectations of a ₹22-25 reduction.