Wed Jan 01 10:10:16 UTC 2025: ## ITC Hotels Demerger Effective: Shares to Trade Independently Within a Month
**Mumbai, India** – ITC Hotels officially demerged from ITC Ltd. today, January 6th, 2025, with shares of the new company expected to begin trading on stock exchanges within a month. Shareholders of ITC Ltd. will receive one share of ITC Hotels for every ten ITC shares held.
The price of ITC Hotels shares will initially be calculated based on the difference between ITC’s closing price on January 3rd and its opening price on January 6th. Nuvama Financial Services estimates an initial price range of ₹150-₹175 per share, and anticipates an adjustment of ₹18-₹25 to ITC Ltd.’s share price to reflect the demerger.
ITC Hotels will initially be included in the Nifty 50 and Sensex indices at a constant price, but will be removed after three trading days following its listing. This removal will be delayed by two trading days for each instance the stock hits its circuit limits.
While the exact listing date remains unconfirmed, Nuvama expects a swift process, citing similar demergers that were completed within a month to six weeks. The brokerage firm anticipates ITC Hotels will meet the criteria for inclusion in the MSCI Global Small Cap Indices, while ITC Ltd. will remain in the Standard Index. Both MSCI and FTSE indices will undergo adjustments to account for the demerger.
The inclusion of ITC Hotels in the derivatives market is considered unlikely in the near term due to the required six-month trading history and subsequent SEBI approval.
First Piper 