Wed Jan 01 14:19:42 UTC 2025: ## ITC Hotels Demerger Effective; Share Price Sees Slight Rise

**Mumbai, January 1, 2025** – The demerger of ITC Hotels from ITC Ltd. officially took effect today, resulting in a marginal increase in ITC’s share price. Trading at ₹486.40 apiece (+0.57%) on the BSE at 2:40 PM, the market reacted positively to the news. The record date for the demerger is January 6th, with shareholders receiving one ITC Hotels share for every ten ITC shares held.

A special pre-opening session (SPOS) on January 6th will determine the initial price of ITC Hotels shares. Analysts offer varying projections, with estimates ranging from ₹113 to ₹175 per share. Nuvama Alternative & Quantitative Research anticipates an ITC share price adjustment of ₹22-25 on January 6th, reflecting its 40% stake in the hotel business. SBI Securities projects a ₹18 adjustment.

The newly listed ITC Hotels will be included in the Nifty 50 and Sensex indices, although its market capitalization and price will remain constant until its listing, expected within 60 days of the NCLT order (by December 16, 2024). It’s also anticipated to join the MSCI Global Small Cap Indices, while ITC Ltd. will remain in the Standard Index. However, ITC Hotels’ inclusion in the Futures & Options (F&O) segment is unlikely due to required trading history and SEBI approval.

The demerger’s complexities involve specific price calculations based on ITC’s closing and opening prices around the record date. MSCI will employ a Price Adjustment Factor (PAF) and temporarily add a detached security, ITC (DET), to reflect the spin-off. This temporary security will be removed upon ITC Hotels’ trading commencement.

While potential delays exist if ITC Hotels fails to list within 20 working days after the record date, analysts express confidence in the timely listing. Investors are advised to consult with financial experts before making any investment decisions based on these projections.

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