The much anticipated ITC Hotels listing day is finally announced. ITC Hotels has received approval from the National Stock Exchange and BSE Limited for listing and trading of its equity shares effective January 29.
In a regulatory filing by ITC, the company stated that, “ITC Hotels (ITCHL) has informed us today that ITCHL has received approval from the National Stock Exchange of India Limited and BSE Limited for listing and trading of its equity shares effective January 29, 2025.”
ITC Hotels listing price
As anticipation about the ITC Hotels share listing date gathered momentum, there were also speculation about the possible price that ITC Hotels will be listed. In the most recent report by Nuvama around January 21 indicated that the ITC Hotels stock could list around “Rs 200 per share with a potential holdco discount of 20%.” According to them the hotels business market cap may be “around Rs 42000 crore.” Several other brokerages have also put out their expectations and the potential listing price varies between Rs 113-170 a share.
ITC demerged Hotels business
ITC had demerged its hotel business from the parent company on January 1. January 6 was fixed at the record date and the demerger ratio was 1:10. This essentially meant that eligible shareholders got 1 share of ITC Hotels for evert 10 shares of ITC. For being eligible, investors had to buy ITC shares before or on January 3. January 3, 2025 was the cut-off. Those who invested in ITC shares after that are not eligible for ITC Hotels shares.
How were shares allotted to ITC shareholders
The ITC Hotels shares were credited to eligible shareholders in their demat account in the 1:10 ratio. As of now the shares are in “dummy ticket” form and these will remain frozen until the listing date. Shareholders were alerted about the share allotment via email and SMS by ITC.
How does the demerger impact ITC
All eyes are on how the demerger impact ITC’s business dynamics. Just to remind our readers, ITC continues to hold 40% stake in the now demerged Hotel business. ITC share price has seen adjustment and the market cap has been aligned after the demerger.
Once ITC Hotels lists on exchanges on January 29, it will remain part of benchmark indices (of which ITC is a part) for 3 trading days. After that it will be excluded. However, the timeline may be extended if circuit limits are hit.