January 6 was a very important day for ITC Limited. Today the company accelerated the process of demerger of its hotel business, which was announced earlier. On this special occasion, a special trading session was organized from 9 am to 10 am, in which the share price of ITC Limited was fixed at Rs 455.60 per share.
Importance of demerger of hotel business
This step by ITC Limited is taken towards operating its core businesses, cigarettes and FMCG, in a more effective manner. After the separation of the hotel business, ITC will focus on its core business.
ITC share performance
ITC’s share price was decided on the basis of the closing price of January 3 and today’s special trading session. The share price opened with a fall of Rs 26. However, the market was expecting a correction of Rs 15-20 after the demerger of hotel business.
ITC Hotels share listing
According to the report of CNBC-TV18, listing of shares of ITC Hotels may happen by mid-February 2025. However, there has been no official confirmation in this regard yet.
Share distribution under demerger
Following the demerger, shareholders of ITC Limited will benefit in the following manner:
- For holding 10 ITC shares, investors will get 1 share of ITC Hotel.
- ITC will hold 40% stake in ITC Hotel Company.
- The remaining 60% stake will be given to existing ITC shareholders.
Will ITC Hotels be a part of Nifty50?
ITC Hotels stock will be included in the Nifty50 as the 51st stock, similar to Jio Financial Services. This will be the 31st stock in Sensex. However, at present this share is not live, due to which its buying and selling is not possible.
ITC Hotels: Current Status and Future Plans
ITC Hotels is currently operating a total of 140 hotels. The company aims to increase this number to 200 hotels by 2030.
- Financial Estimates: According to the report of SBI Securities, the net profit of ITC Hotels could reach Rs 546 crore in FY 2025.
What is special for investors?
After the demerger of the hotel business, ITC Limited will focus more on its cigarette and FMCG business. This step will not only enhance the management efficiency of the company but will also create better return prospects for investors.
