ITC Hotels demerger becomes effective today: ITC to be part of SPOS on Jan 6; Nuvama eyes ITC Hotels listing at Rs 150-175/ share

After ITC's hotels business has spun off into a separate entity ITC Hotels (ITCHL) effective today, its stock traded with mild gains of 0.47 per cent. Further on the record date for demerger i.e. fixed as January 6, the stock will be part of the special pre-open session or SPOS.

Now as the National Company Law Tribunal- Kolkata has already given its clearance to the demerger scheme- the stock of ITC Hotels is expected to enter the listed space in another 30-40 days.

The company received the certified copy of the Order of Hon’ble National Company Law Tribunal (‘NCLT Order’), Kolkata Bench, sanctioning the Scheme on December 16, 2024 and as per the SEBI Circular dated June 2023, shares of the demerged entity- ITC Hotels are to be listed within 60 days from date of receipt of NCLT Order.

How will the price of ITC Hotels be decided till listing?

As per Nuvama Alternative and Quantitative, ITC Hotels will be visible on the Nifty and Sensex until listing at a constant price i.e. the difference between the closing price of ITC on January 3, 2025 and its opening price during the SPOS session on January 6.

Furthermore, it will be the 51st constituent in the Nifty50 index and 31st constituent in Sensex.

Besides, the stock will continue to be part of both the headline indices for 3 days after listing. Post this period, the stock will be ousted out from the indices. Note, in a case if the stock hits circuit limits, the exclusion will be postponed by two trading days each time.

ITC Hotels expected listing price 

Domestic brokerage Nuvama expects a price-adjustment of between Rs 22-25 in ITC on the ex-date for spin-off i.e. January 6. Additionally, the brokerage expects the delisted entity -ITC Hotels to enter D-Street at a price range of between Rs 150-175 per share.