ITC Hotels Share Price: Calculation Method Explained as Demerger Date Approaches
The eagerly anticipated demerger of ITC Hotels from ITC Ltd. is set to take place on January 6, 2025, with the record date already announced. Following this, the share price of ITC Hotels will be determined through a Special Pre-Open Session (SPOS) on the stock exchanges, where market forces will establish the initial price based on demand and supply.
How the Price Will Be Calculated
The initial share price of ITC Hotels will be calculated based on the difference between ITC’s closing price on January 3, 2025, and its adjusted pre-open price on January 6, 2025 (ex-date for the demerger). As per Nuvama Wealth Management, a leading brokerage firm, ITC Hotels’ stock is likely to debut in the price range of Rs 150 to Rs 175 per share.
On January 3, 2025, ITC’s stock closed at Rs 483.95 on the National Stock Exchange (NSE), registering a 1.04% drop. The stock had previously reached its 52-week high of Rs 528.50 on September 27, 2024.
Expected Adjustment in ITC’s Share Price
According to Nuvama Wealth Management, ITC’s share price on January 6, 2025, is expected to be adjusted by approximately Rs 22 to Rs 25, representing ITC’s 40% stake in ITC Hotels while factoring in a 20% holding discount. Nuvama’s FMCG team predicts a slightly lower adjustment of around Rs 18 per share.
Listing of ITC Hotels
While there is no confirmed listing date for ITC Hotels yet, industry experts anticipate that the company may list its shares within a month after the demerger. The listing process involves several regulatory approvals, which may take a few weeks to complete.
Demerger Ratio and Eligibility
ITC Hotels was officially demerged from ITC on January 1, 2025, and the record date for this demerger is set for January 6, 2025. Shareholders who owned ITC shares before January 3, 2025, will receive shares of ITC Hotels in a ratio of 1:10—meaning for every 10 shares of ITC held, shareholders will receive 1 share of ITC Hotels.
Overview of ITC Hotels
Established in 1975, ITC Hotels has grown into one of India’s leading hospitality chains, operating more than 140 hotels across 90+ destinations. The brand portfolio includes:
ITC Hotels and Mementos (luxury segment)
Storii (premium boutique segment)
Welcomhotel (upper upscale category)
Fortune (midscale segment)
WelcomHeritage (heritage leisure space)
Over the years, ITC Hotels has built a strong reputation in luxury and premium hospitality, offering a wide range of experiences through its diverse brand portfolio.
Conclusion
The demerger of ITC Hotels marks a significant move by ITC Ltd. to unlock value for its shareholders. The upcoming listing of ITC Hotels on the stock exchanges is expected to generate considerable interest among investors, given the hotel chain’s robust market presence and strong brand recognition. Investors and market participants will be closely watching ITC’s stock performance and ITC Hotels’ listing in the coming weeks.