ITC Hotels Demerger: Price Discovery and Market Expectations

ITC share price was discovered at ₹455 per share in the special pre-open session for price discovery, reflecting a 5.6% drop or ₹27 from the previous day’s closing price. This comes as ITC’s hotel business is spinning off into a separate entity. The price of ITC Hotels will be fixed for the first day of listing and for the next 3 business days. If the stock hits its circuit limits, the exclusion period will be extended by 2 trading days.

Trading and Share Allocation

After the special pre-open session, traders cannot trade the dummy version of ITC Hotels shares. Trading can only begin once the stock is officially listed on the exchanges. Under the demerger plan, ITC shareholders will receive 1 share of ITC Hotels for every 10 shares of ITC held. ITC will retain a 40% stake in the new hotel entity, while the remaining 60% will be distributed to existing ITC shareholders based on their holdings.

About ITC Limited

ITC Limited is an Indian company based in Kolkata, with operations in six key sectors: FMCG, hotels, agribusiness, IT, paper products, and packaging. A remarkable portion of its revenue comes from tobacco products.

ITC shares are priced at ₹448.65, down by ₹6.95 (1.53%) today. The stock opened at ₹450.20, reached a high of ₹455.60, and a low of ₹448.10. Its market capitalisation stands at ₹5.61 lakh crore, with a P/E ratio of 27.33 and a dividend yield of 3.06%. The 52-week high is ₹528.50, and the 52-week low is ₹399.35.

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