If you’re an ITC shareholder, you may have recently noticed something new in your Demat account—ITC Hotels shares! After a long-awaited demerger process, ITC Hotels shares have now been credited to the Demat accounts of eligible ITC shareholders. Here’s what you need to know about this development, including the allotment ratio, the upcoming listing, and how it affects your investments.
What’s Happening with ITC Hotels Shares?
As part of ITC Limited’s ongoing efforts to unlock value for its shareholders, the company has successfully completed the allotment of ITC Hotels shares following the demerger. On January 13, 2025, ITC shareholders saw the crediting of these shares to their Demat accounts. ITC Hotels’ shares were allotted at a ratio of 10:1, meaning for every 10 ITC shares held, shareholders received 1 share of ITC Hotels.
This allotment is part of a larger demerger scheme designed to separate ITC Hotels from the parent company, ITC Limited. As of January 11, 2025, ITC Hotels has officially ceased to be a subsidiary of ITC Limited. This change marks an important shift in the structure of ITC as the hospitality business now operates independently.
Key Details for ITC Investors
- Demerger Allotment Ratio: For every 10 shares of ITC, shareholders were allotted 1 share of ITC Hotels.
- Face Value of ITC Hotels Shares: Each share of ITC Hotels carries a face value of ₹1.
- Shares Credited to Demat Accounts: ITC Hotels shares have been credited to eligible Demat accounts, but they are currently being shown as a dummy ticker, meaning they have no trading value yet.
You will also likely have received an SMS from your depository (NSDL/CDSL) confirming the credit of ITC Hotels shares to your account. It’s important to note that these shares are still in a frozen state until they are officially listed on the stock exchanges.
When Will ITC Hotels Be Listed?
One of the most important questions on every investor’s mind is when will ITC Hotels actually list on the stock exchanges? According to ITC’s latest announcement, ITC Hotels shares will be listed on the NSE and BSE within 60 days of the demerger approval from the National Company Law Tribunal (NCLT). This means we can expect the official listing to happen by mid-February 2025.
Once the listing happens, trading in ITC Hotels shares will begin, and they will be available for buying and selling just like any other stock on the exchanges.
The Path Forward: What Does This Mean for ITC Investors?
For ITC investors, the demerger represents a significant opportunity to potentially benefit from the growth of ITC Hotels as a standalone entity. The hospitality sector has been showing strong signs of recovery, and with the new independence, ITC Hotels will likely have more flexibility to grow its operations.
Before the official listing, the shares will be listed as a dummy ticker on both the Nifty 50 and BSE Sensex indexes, meaning it will be part of these major indices without trading actively. However, ITC Hotels will eventually be removed from the indices a few days after trading begins, depending on market conditions.
Investors will also be looking forward to the future growth prospects of ITC Hotels as a separate entity. The company’s entry into the market independently will give it more room for strategic initiatives, potentially leading to higher profitability and better shareholder value in the long term.
What’s Next for ITC Hotels?
Now that the shares are credited, all eyes are on the upcoming listing. ITC has assured that the listing process will proceed smoothly, with the shares expected to be available for trading soon. As an investor, this might be a good time to keep an eye on the stock’s performance post-listing.
It’s worth noting that ITC Hotels’ entry into the market as a separate entity opens up new opportunities, but it also brings new risks. The company will now have to navigate the challenges of the hospitality sector independently, which will require strong leadership and effective strategic decisions.
Conclusion: Should You Hold or Sell?
If you’re holding onto ITC shares and are unsure about whether to sell or hold onto your newly allotted ITC Hotels shares, it’s important to consider the company’s prospects in the hospitality industry. As ITC Hotels prepares for its official listing, it could be a good idea to evaluate its market position and future growth potential before making any decisions. Consulting with a financial advisor can help you assess whether it makes sense to hold or sell based on your investment goals.
In the meantime, keep an eye out for the listing date and trading details for ITC Hotels, which are expected to be announced soon.
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