ITC Demerger Special Trading Session: When Will ITC Hotels List On BSE, NSE? Here's What You Should Know

ITC-ITC Hotels Demerger: January 6th is a significant day for ITC shareholders, as the company will turn ex-date for its demerger of ITC Hotels business. A special trading session is being held on Monday, as ITC undergoes the adjustments of demerger of its hotels business. The demerger has come into effect from January 1, 2025, while the eligibility of ITC shareholders who will receive ITC Hotels shares will be determined on January 6th.

Special Trading Session For ITC:

From 9:00 AM to 9:45 AM, ITC share price was held in a pre-open session on both BSE and NSE. The move is to discover its share price, after the demerger with ITC Hotels. Both ITC and ITC Hotels had fixed January 6th as the record date, to determine eligible shareholders for receiving ITC Hotels shares.

Currently, the pre-open indicative price of ITC Ltd is at Rs 456 per share on BSE.

ITC share prices will resume trading from 10:00 am onward, while ITC Hotels will be listed accordingly.

The demerger includes a share entitlement ratio of 10:1 to ITC shareholders. Meaning, the shareholders of ITC will get 1 () equity share of the face and paid-up value of Re. 1 in the ITC Hotels for every 10 (10) Ordinary Shares of the face and paid-up value of Re. 1 each held in ITC Ltd.

Post the demerger, ITC is transferring key companies' shareholding to ITC Hotels which also came into effect on January 1, 2025:

• 100% shareholding of wholly-owned subsidiaries Fortune Park Hotels, Bay Islands Hotels, Landbase India, and WelcomHotels (Lanka).
• 68% shareholding of subsidiary Srinivasa Resorts.
• 48.96% shareholding of International Travel House.
• 45.78% shareholding of Gujarat Hotels.
• 50% shareholding of Maharaja Heritage Resorts.

Furthermore, ITC shares will be traded on exchanges for three sessions ahead. However, if the stock hits the circuit limit in the first two days, then its exit from BSE and NSE will be postponed by three more days.

ITC retained about 40% stake in its newly demerged ITC Hotels, while the rest of 60% will be delivered among public shareholders as per the demerger entitlement ratio.

Here's what Nuvama highlighted about ITC Hotels pre-open session:

1. ITC Hotels will be maintained in all the NSE and BSE Indices at a constant price i.e., the difference between the close price of ITC on January 3, 2025, and the open price of ITC discovered during the SPOS (special pre-open session) on January 6, 2025.

2. TC Hotels will be dropped from all the NSE and BSE indices at the last traded price which is Effective at the opening of the ITC Hotels listing date + 3 business days. If the stock hits circuit limits, the exclusion will be postponed by two trading days each time.

3. For Instance: If supposedly ITC Hotels lists on February 10, 2025, then the stock will compulsorily be deleted on February 13, 2025.

4. The end-of-the-day index weightages file will automatically get adjusted to the free float market-cap of existing constituents plus ITC Hotels.

5. There will be churning or weight distribution (actual buying or selling) amongst other member constituents once ITC Hotels starts trading and get excluded on Trading plus third day. So actual churning will happen on ITC Hotels exclusion day (in future).

On the listing date, ITC added, "There is no concrete listing day yet and it may take few weeks' time to get all the listing approvals. ITC Hotels being carved out from one of the biggest giants so we expect the listing process should be fast tracked and quite likely ITC Hotels may be listed in a month's time (or even earlier)."

In H1FY25, ITC Hotels total income stood at Rs 1,489 crore, while EBITDA was at Rs 413 crore. Revenue from operations stood at Rs 1,471 crore in H1FY25. In FY24 alone, the total income and revenue of ITC Hotels rose to Rs 3069 crore and Rs 3,034 crore from income and revenue of Rs 2,654 crore and Rs 2,629 crore in FY23.

Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become synonymous with Indian hospitality. With over 140+ hotels in 90+ destinations across six distinct brands, ITC hotels Limited integrates India's renowned tradition of hospitality and warmth, with globally benchmarked facilities & services.