ITC Hotels Demerger Today: Record Date Arrives, All Eyes On ITC

ITC Limited, one of India’s largest FMCG giants, is in the spotlight today as the record date for the highly anticipated demerger of its hotels business into ITC Hotels has arrived.

This move is expected to unlock substantial value for shareholders and position ITC Hotels as a dominant player in the luxury hospitality sector.

ITC Demerger Record Date
Under the demerger scheme, ITC shareholders on record as of January 6, 2025, will receive one ITC Hotels share for every 10 shares they hold in ITC. Investors had to purchase ITC shares by January 3, 2025, to qualify for this benefit. The pre-open session for price discovery began this morning at 9:00 AM, with normal trading set to resume at 10:00 AM.

ITC Demerger Details 
The demerger of ITC Hotels from ITC Limited officially came into effect on January 1, 2025. As part of the arrangement, ITC Limited retains a 40% stake in ITC Hotels, while the remaining 60% has been allocated to its shareholders.

A Strategic Move to Elevate ITC Hotels

This move is seen as a strategic effort to unlock shareholder value and allow ITC Hotels to concentrate on its growth in the luxury hospitality sector. The newly formed entity will become India’s second-largest hotel chain, with a portfolio of 140 hotels and 12,965 rooms. Over the next five years, ITC Hotels aims to expand further, with 46 new properties and 4,300 rooms in the pipeline, bringing the total to 186 hotels and 17,265 rooms by March 2030.

Trading Details and Market Implications 
Eligible shareholders will soon see ITC Hotels shares credited to their accounts. Once trading begins, ITC Hotels stock will remain in the indices for three trading days. However, if the stock hits the circuit limit on the first two days, its removal from the indices will be delayed by three additional days.
The demerger ratio—one ITC Hotels share for every 10 ITC shares held,

As trading starts today, ITC stocks will be the key stocks to watch out for today.