Mon Jan 06 06:30:00 UTC 2025: ## ITC Hotels Spin-off Sends Parent Company Shares Down

**Mumbai, India** – The demerger of ITC Hotels from its parent company, ITC Ltd., resulted in a significant drop in ITC’s share price. Following a special pre-open session for price discovery, ITC Ltd. shares closed down 5.6 percent at Rs 455, a Rs 27 decrease. This comes as ITC Hotels prepares for its independent listing.

Under the demerger scheme, ITC shareholders received one ITC Hotels share for every ten ITC shares held, with ITC retaining a 40% stake. Existing shareholders will hold the remaining 60%.

While trading in a dummy version of ITC Hotels ceased after the pre-open session, brokerages offered varying predictions for the hotel chain’s initial share price. Nuvama estimated a range of Rs 150-175, Sharekhan projected Rs 150-170, while Nomura predicted a higher range of Rs 200-300, potentially resulting in a market capitalization of Rs 42,500 crore to Rs 62,200 crore. Nuvama also anticipated an adjustment of Rs 22-25 in ITC’s share price to reflect its reduced stake and holding discount.

ITC Hotels will be included in NSE and BSE indices at a constant price for the listing day and three subsequent business days. Any circuit breakers will postpone the exclusion. However, trading in the new entity will only commence upon its official listing. Investors are advised to consult with financial experts before making any investment decisions.

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