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  1. ITC Hotels shares list at ₹180 on NSE, 31% discount to implied price of ₹260: Check key details

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ITC Hotels shares list at ₹180 on NSE, 31% discount to implied price of ₹260: Check key details

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3 min read | Updated on January 29, 2025, 16:33 IST

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SUMMARY

ITC Hotels shares listing: On the BSE, shares were listed at ₹188 apiece. The implied price on the BSE was ₹270. Hence, this suggests that the stock was listed at a 30.3% discount on the BSE.

Stock list

On January 6, the BSE and NSE conducted a special trading session to discover the price for ITC hotels business post demerger.

On January 6, the BSE and NSE conducted a special trading session to discover the price for ITC hotels business post demerger. | Image: ITC website

ITC Hotels listing: Shares of ITC Hotels, the demerged business of the diversified conglomerate ITC Ltd, listed at ₹180 on the NSE on January 29, Wednesday.

The price was 30.7% lower than the implied price of ₹260.

On the BSE, shares were listed at ₹188 apiece. The implied price on the BSE was ₹270. Hence, this suggests that the stock was listed at a 30.3% discount on the BSE.

Meanwhile, shares of ITC Ltd were trading at ₹432.55 apiece on the NSE, down ₹2.90, or 0.67%.

The demerger of ITC's hotel business came into effect on January 1, 2025, with January 6 fixed as the record date. The move separated ITC Hotel from the parent entity.

"The equity shares of ITC Hotels Limited...shall be traded in Series 'BE' and subsequently be shifted to Series 'EQ,'" the company added.

Separately, ITC, in a regulatory filing, informed that ITCHL received approval from the National Stock Exchange of India Ltd and BSE Ltd for the listing and trading of its equity shares effective January 29, 2025.

On January 6, the BSE and NSE conducted a special trading session to discover the price for ITC hotels business post demerger.

ITC shares settled at ₹455.60 on the NSE while on the BSE, shares settled at ₹455.

As per the demerger scheme, ITC shareholders will receive one share of ITC Hotels for every 10 shares of ITC.

Further, the demerger scheme implied that ITC shareholders whose names will appear in the list of shareholders on January 6 will receive "one share of ITC Hotels for every 10 shares of ITC", according to a regulatory filing from the Kolkata-based conglomerate on December 31, 2024.

ITC Hotels demerger: A brief history

In July 2023, ITC announced demerging its hotel business by incorporating a wholly owned subsidiary, ITC Hotels Ltd.

The scheme was approved a month later in August, which will create a new wholly owned subsidiary, ITC Hotels Ltd., to handle its hotels and hospitality business.

The process will create a strong foundation for accelerating growth and sustained value creation by providing long-term stability and strategic support to ITC Hotels while also instilling a sense of assurance among stakeholders, including partners and employees, the company had earlier said.

As per the schemes, investments in hospitality entities forming part of the hotel business—Bay Islands Hotels Ltd, Fortune Park Hotels Ltd, Landbase India Ltd, Srinivasa Resorts Ltd, WelcomHotels Lanka Pvt Ltd, Gujarat Hotels Ltd, International Travel House Ltd, and Maharaja Heritage Resorts Ltd—will be transferred to ITC Hotels.

Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has over 140 hotels across 90-plus locations.

Cost of acquisition

ITC, in its press release shared with stock exchanges on January 28, said that the total cost of acquisition of 100 shares of ITC Hotels (ITCHL) should read as ₹54,040, instead of ₹50,040.

"For example, if 1,000 ordinary shares of ITC were purchased at ₹400 per share by a shareholder, the total cost of acquisition would amount to ₹4,00,000 before the demerger. Based on the share entitlement ratio, 100 shares of ITCHL would be allotted to the said shareholder. The total cost of acquisition of ₹4,00,000 would be apportioned in the aforesaid ratio - ₹3,45,960 (86.49% of ₹4,00,000) being the total cost of acquisition of 1,000 ITC shares and ₹54,040 (13.51% of ₹4,00,000) being the total cost of acquisition of 100 shares of ITCHL," the release added.

(With PTI inputs)
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