New Delhi: ITC Hotels demerger will take place on Tuesday, January 1, 2025. The demerger will lead to benefits worth Rs 1,500 crore for ITC Hotels. ITC has fixed the ex-date for award of ITC Hotels’ shares to existing ITC shareholders is January 6, 2025. ITC shareholders will receive 1 ITC Hotel share for every 10 shares of the conglomerate held by them.
The share will be allocated based on the holdings recorded on January 6, 2025, according to an exchange filing.
All about ITC Hotels demerger scheme
After the ITC Hotels demerger, the hospitality arm of ITC will apply to exchanges for listing as a separate entity. ITC Hotels listing must take place before February 14, 2025. Until, its listing as a separate entity, ITC Hotels’ stock will remain part of the 30-share Sensex as a dormant stock. The Sensex will have 31 stocks until ITC Hotels is listed separately.
ITC will hold a 40 per cent stake in ITC Hotels post-demerger. ITC Hotels will become the holding company for all ITC hotels, offices, staff housing and other such real estate assets, according to the scheme of the demerger. ITC Hotels’ balance sheet is expected to be worth Rs 1,500 crore post-demerger.
ITC share price history
ITC’s shares rose 1.37 per cent to Rs 483.65 apiece. The company’s stock opened at Rs 479.35 apiece, before rising to a high of Rs 484.50 and touching a low of Rs 474.60 per share. ITC’s market capitalisation stood at over Rs 6.05 lakh crore as of Tuesday, December 31, 2024. ITC’s shares were up 1.93 per cent in the past 5 days, and 1.52 per cent in the past month. In the past 6 months, ITC’s stock rose 12.91 per cent and 3.50 per cent in the past year.
ICICI Securities gave an ADD call on ITC’s stock with a target price of Rs 500 apiece, down from Rs 520 per share earlier. ITC Hotels’ revenue rose 12 per cent year-on-year and an EBIT margin expansion of 20.8 per cent during the same period.
ITC Hotels demerger: Salt-to-stationery conglomerate ITC is set to spin off its hospitality unit ITC Hotels effective January 1, 2025. Here’s what it means for investors. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
