ITC Hotels Listing: Check listing date, cost of acquisition of ITC shares, other key details

ITC Hotels listing: ITC has announced the listing date of its demerged hotels business. The cigarettes-to-FMCG conglomerate has also issued general guidance towards apportionment of the cost of acquisition of the ordinary ITC shares and ITC Hotels shares.

In 2023, ITC decided to split its hotel business into a separate company to create more value for its shareholders. They set the demerger ratio at 1:10, with the record date set for the said demerger as January 6, 2025. This means that for every 10 shares of ITC held by shareholders as of January 6, they would receive one share of ITC Hotels.

ITCHL has allotted 125,11,71,040 Equity Shares of ₹1/- each to the shareholders of ITC whose names were recorded in the Register of Members of ITC or in the Register of Beneficial Owners maintained by the Depositories as on the Record Date, the company informed via an exchange filing.

Cost of acquisition of shares

The company also shared one example. It said 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.

ITC Hotels listing date

ITC on Monday informed exchanges that shares of ITC Hotels have received approval from the National Stock Exchange (NSE) and BSE for listing and trading of its shares effective January 29. This means ITC Hotels share price will start trading on exchanges from tomorrow onwards.

What will be ITC Hotels share price?

The last discovered price was ₹260 per share on the NSE and ₹270 per share on the BSE. Now, another price discovery session will take place on January 29, 2025.

How will various passive indices incorporate ITC Hotels?

According to Nuvama Alternative & Quantitative Research, ITC Hotels will be excluded from the Nifty 50 and Sensex indices on T+3 day.

"Assuming the current static price of around ₹260 remains on the day of exclusion, the passive flow for Nifty50 will be around $100 million (current weight of 23bps), and for Sensex, it will be around $65 million (current weight of 28bps). If the stock hits circuit limits on the day of exclusion, then exclusion will be postponed by two trading days for each instance," said the brokerage.

Meanwhile, for the MSCI Index, ITC Hotels is expected to meet the criteria for inclusion in the MSCI Global Small Cap Indexes. Thus, the stock will migrate from Standard Index (currently dummy stock) to Small-cap Index, Nuvama added.

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