ITC Hotels to list on NSE, BSE today; what price will it list at?

ITC Hotels to list on NSE, BSE today; what price will it list at?

ITC Ltd.’s hotel business, now spun off as ITC Hotels, is set to debut on the stock exchanges this Wednesday.

The demerger is a strategic move by ITC to unlock value for its shareholders. As per the demerger ratio of 1:10, investors who held 10 shares of ITC as of January 6, 2025, will receive one share of ITC Hotels.

How ITC Hotels Will Be Traded Post-Listing

Following its listing, ITC Hotels will remain in all NSE and BSE indices at a constant price for the first three trading days. If the stock hits circuit limits, its exclusion from indices will be delayed by two additional trading days each time.

Expected Share Price Estimates

Analysts have varying expectations regarding the stock’s listing price:

  • Nuvama estimates an initial range of ₹150-175 per share.
  • Sharekhan believes price discovery could land between ₹150-170 per share.
  • Nomura, a Japanese brokerage, has a more bullish outlook, expecting ITC Hotels to list between ₹200-300 per share, valuing the company between ₹42,500 crore to ₹62,200 crore.

ITC Share Price Post-Demerger

On January 6, ITC’s stock adjusted for the hotels demerger and was priced at ₹455 per share, dropping ₹27 from the previous session’s close after a special pre-open session for price discovery.

Ownership Structure Post-Demerger

Under the demerger plan:

  • 60% of ITC Hotels will be directly owned by ITC shareholders in proportion to their ITC holdings.
  • 40% will remain with ITC Ltd.

Market experts believe that ITC Hotels, as a standalone entity, may command a premium valuation compared to when it was part of ITC Ltd., thanks to better price discovery in the market.

Would you like more insights on how this impacts ITC’s long-term growth?

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