Wed Jan 08 06:16:03 UTC 2025: ## ITC Hotels Demerger: Shares to Go Ex-Date Today, Listing Expected in February
**MUMBAI, January 3, 2025** – Shares of ITC Ltd. will go ex-date today for the demerger of its hotel business, ITC Hotels. Monday, January 6th, is the record date to determine eligible shareholders who will receive one share of ITC Hotels for every 10 ITC shares held. ITC Hotels will operate independently, with ITC shareholders retaining 100% ownership (60% directly and 40% indirectly).
Analysts anticipate an ITC Hotels listing in February. Batlivala & Karani Securities (B&K) projects a fair value of ₹145 per share, based on a 25 times EV/EBITDA multiple on FY26E EBITDA. They highlight ITC Hotels’ strong financial position – a zero-debt balance sheet and ₹1,500 crore in cash reserves – and ambitious expansion plans. However, they foresee potential supply overhang due to British American Tobacco’s (BAT) exit.
Despite this, B&K maintains a “Buy” rating on ITC Ltd., with a target price of ₹588, citing enhanced prospects from the cigarette business, value unlocking from the demerger, and anticipated recovery in the paper business. They forecast 7.5% YoY revenue growth in the cigarette business for the December quarter.
Other brokerages offer varying perspectives. ICICIdirect projects a ₹195 target price for ITC Hotels (15-30% upside from an expected ₹150-170 listing price) and a ₹555 target for ITC, predicting a ₹12-15 per share price adjustment post-demerger. Systematix, however, estimates a ₹5 per share adjustment and maintains a “Hold” rating on ITC with a ₹500 target price. Centrum Broking also holds a positive outlook, suggesting a ₹583 target for ITC.
The price of ITC Hotels shares on the NSE and BSE indices will be determined by the difference between ITC’s closing price on January 3rd and its opening price on January 6th. ITC will be removed from indices three business days after ITC Hotels’ listing, with potential delays if circuit limits are hit.
First Piper 