Mon Jan 06 17:40:18 IST 2025: ## ITC Hotels Demerges: Share Price Settled After Special Trading Session

**Mumbai, January 6, 2025** – ITC Ltd. completed the demerger of its hospitality arm, ITC Hotels, today. A special pre-open session on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) determined the price of the newly independent ITC Hotels shares. The session concluded with an ITC share price adjustment of ₹26 (5.4%) on the NSE, settling at ₹455.60, and ₹27 (5.6%) on the BSE, settling at ₹455. This was significantly higher than the ₹15-20 adjustment predicted by market analysts.

The demerger ratio is 1:10, meaning ITC shareholders receive one ITC Hotels share for every ten ITC shares held. The listing date for ITC Hotels is yet to be announced, but speculation points to a listing before February 2025, with an initial share price projected to range between ₹100 and ₹125. Analysts at various firms, including Nuvama and SBI Securities, offered varying projections for the ITC Hotels share price, ranging from ₹113 to ₹175 based on industry peer valuations and expected EV/EBITDA multiples.

Post-demerger, ITC will focus on its core cigarette and FMCG businesses, aiming for improved capital efficiency and returns. Several analysts maintain a “Buy” rating on ITC shares, citing strong growth prospects for the company’s core businesses and the positive long-term impact of the demerger. The demerger is expected to unlock substantial shareholder value.

ITC Hotels, India’s second-largest hospitality entity with 140 properties, aims to expand its portfolio to over 200 hotels by 2030. The company boasts healthy return ratios and a net cash surplus. While the demerger may create short-term market fluctuations, analysts remain optimistic about the long-term prospects of both ITC Ltd. and ITC Hotels Ltd. The inclusion of ITC Hotels in various stock indices is also under consideration. However, due to the required six-month trading history, its inclusion in the Futures & Options (F&O) segment is currently unlikely.

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