January 6, 2025
New Delhi, India
ITC Hotels Demerger: Key Highlights
Effective Date: The demerger of ITC Hotels from ITC Ltd. became effective on January 1, 2025, with the record date set as January 6, 2025.
- Shareholder Entitlement:
Shareholders receive 1 ITC Hotels share for every 10 ITC shares held. - ITC’s Stake Post-Demerger:
ITC retains 40% ownership, while the remaining 60% is directly distributed among shareholders.
Market Reaction
- ITC Shares Adjust:
ITC shares fell by 5.6%, closing at ₹455 post a special pre-open session for price discovery. - ITC Hotels Fair Price Expectations:
- Nuvama: ₹150–175 per share.
- Sharekhan: ₹150–170 per share.
- Nomura: ₹200–300 per share, suggesting a market cap of ₹42,500–₹62,200 crore.
Impact on ITC Hotels
Post-demerger, ITC Hotels will operate independently while leveraging ITC’s brand equity. Despite contributing only 4% to ITC’s overall revenue and EBITDA, the restructuring is expected to unlock value through focused growth.
What’s Next?
- Listing Date: Pending announcement.
- Market Sentiment: Analysts anticipate premium valuations for ITC Hotels, driven by better price discovery and strong market dynamics.
Stay tuned for live updates on ITC Hotels’ listing and market performance.
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