ITC Hotels Demerger: ITC shares adjust by ₹26 after special session for price discovery; a quick summary of all you need to know

The demerger of ITC's hotel business came into effect on January 1 itself.

ITC Hotels' share price

Today, ITC held a pre-open session for price discovery for ITC Hotels between 9:00 AM and 9:45 AM. The normal trading began at 10:00 AM.

The difference between ITC's closing price on January 3, 2025, and the opening price discovered during the Special Pre-Open Session (SPOS) was said to determine the demerged entity's stock price.

After the one-hour special session, ITC's discovered price stands at ₹455.60 per share. Shares of ITC ended at ₹481.6 apiece on the NSE on Friday. This implies a difference of ₹26.

It must be noted that this is not the stock price of ITC Hotels. The real stock price will be unveiled once the hotel's business lists on the bourses in February.

As per news reports, most analysts anticipate that ITC Hotels stock could be priced anywhere between ₹150-₹200 per share.

ITC Hotels Demerger: All about the demerger scheme

ITC Hotels will issue equity shares directly to the shareholders of ITC in a manner such that about 60% of the stake is held directly by ITC shareholders proportionate to their shareholding in ITC, and the remaining 40% stake will continue with ITC.

"Overall, existing ITC shareholders will hold 100 percent of ITC Hotels, i.e., about 60 percent directly and a balance of about 40 percent through their shareholding in ITC," it said.

Moreover, ITC will transfer "cash & cash equivalents of Rs 1500 crore" to the demerged entity "to cater to planned growth & contingency requirements," said ITC in an investor presentation shared on Monday to bourses.

All conditions specified for the scheme have been satisfied, and ITC Hotels will file an application with stock exchanges/SEBI for listing its shares post allotment.

"Shares to be listed within 60 days from the date of receipt of the NCLT order as per SEBI Master Circular dated June 20, 2023," it said.

The Kolkata bench of the National Company Law Tribunal (NCLT) had on December 16, 2024, approved the scheme.

ITC and ITC Hotels will also execute a 'Trademarks License Agreement' under which ITC Hotels would be given a license to use the ITC trademark along with any copyrights as 'Bukhara', 'Dum Pukht' and 'Dakshin' trademarks.

Along with investments in Hospitality Entities such as Bay Islands Hotels, Fortune Park Hotels, Landbase India, Srinivasa Resorts, WelcomHotels Lanka, Gujarat Hotels, International Travel House, Maharaja Heritage Resorts Ltd - forming part of Hotels Business, are being transferred to ITC Hotels.

The new entity will be with 'Zero Debt Balance Sheet" and generate cash to accelerate growth. It is also well positioned to execute "selective Inorganic Opportunities", the company added.

ITC Hotels is a leading chain with over 140 hotels in 90 destinations with six distinct brands.