ITC hotels demerger: Shares falls 5% to “discover” price after hotels business spin off

Mon Jan 06 06:01:56 UTC 2025: ## ITC Stock Drops After Hotels Spin-off

**Mumbai, January 6, 2025** – Shares of ITC Ltd., the Indian conglomerate, experienced a significant drop following the spin-off of its hotels business into a separate listed entity. In a special trading session on Monday, ITC’s stock price fell approximately 5%, settling at ₹455.6 after adjusting for the demerger. This represents a decrease of 1.1% (₹450.55) from the adjusted closing price at 11:03 a.m. IST.

The spin-off, effective January 1st, saw ITC shareholders receive one share in the newly independent ITC Hotels for every 10 ITC shares they held. This values ITC Hotels at ₹260 per share based on the price adjustment. ITC will retain a 40% stake in ITC Hotels, with the remaining shares available to the public. Trading of ITC Hotels shares is anticipated to commence in February.