ITC Hotels, on January 1, 2025 officially was demerged from its parent company, ITC. The record date for this long-anticipated demerger has been fixed on January 6. If you are an exiting ITC shareholder or buy shares before January 3, you get ITC Hotels shares in the demerger ratio of 1:10. Essentially that means 1 share of ITC Hotels for every 10 ITC shares held. The ITC Hotels shares will be credited to your account shortly after the record date. ITC Hotels is expected to be listed on by mid-February 2025.
What will happen on January 6?
To drive the intrinsic value of the ITC shares, a special trading session will be conducted as well on January 6, 2025.
Furthermore, this session will set the stage for the share price, after which ITC Ltd’s price will adjust accordingly.
Each ITC Hotels share will carry a face value of Rs 1.
Also Read: Standard Glass Lining IPO: GMP up over 59%; Price band, allotment and other key details of the upcoming mainboard issue
ITC share demerger: What are the key dates to remember
Record Date – January 6, 2025
Last Date to Buy ITC Shares – January 3, 2025 (to be eligible for ITC Hotels shares)
Listing of ITC Hotels Shares – Expected by mid-February 2025
What the demerger means for shareholders
As part of this demerger scheme, the eligible ITC shareholders will receive 1 share of ITC Hotels for every 10 ITC shares.
The record date for this allocation is January 6, 2025, with shares being directly credited to Demat accounts.
Also Read: Why are markets rallying today? Here are 3 factors that’s supporting the 1000-point surge on Sensex
Subsequently, it is also important to note that the trading of ITC Hotels shares will not commence immediately. The company shares will be listed on the Indian bourses, NSE and BSE within 60 days of NCLT approval, potentially by mid-February 2025.
ITC’s Financial Support to ITC Hotels
As part of this latest development and demerger scheme, ITC will transfer Rs 1,500 crore to ITC Hotels. Currently, ITC Hotels boasts a portfolio of over 140 properties across 90 destinations, offering six distinct brands.
» Read More
