January 3, 2025
New Delhi, India
ITC Hotels Demerger
The highly anticipated demerger of ITC Hotels has taken effect as of January 1, 2025. Investors eyeing ITC shares to receive ITC Hotels shares must act by today, January 6, which is the record date for the demerger.
Share Allocation and Ownership
- Allocation Ratio:
Shareholders will receive 1 ITC Hotels share for every 10 ITC shares held. - Ownership Structure:
ITC Ltd will retain 40% stake in ITC Hotels, while the remaining 60% will be allocated to existing shareholders proportionate to their ITC holdings.
Price Discovery for ITC Hotels Shares
- Special Pre-Open Session:
On January 6, a special trading session will determine the ITC Hotels share price. - Price Calculation:
The price will be derived by subtracting ITC’s open price during the pre-open session from its closing price on January 3.
Trading Details for ITC Hotels Shares
- Initial Listing and Indices:
ITC Hotels shares will be included in NSE and BSE indices at a constant price for the listing day and the next three business days. Circuit limits may delay exclusion by two days for each occurrence. - Dummy Trading Restriction:
Investors will not be able to trade the dummy version of ITC Hotels shares. Official trading begins only post-listing.
Share Credit and Listing Timeline
- Demat Credit:
Eligible shareholders will receive ITC Hotels shares in their Demat accounts post the record date. - Listing Deadline:
ITC Hotels shares will be listed on NSE and BSE by mid-February 2025, within 60 days of receiving the NCLT order on December 16, 2024.
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