ITC-ITC Hotels Demerger: How Will shareholders Benefit? How Many Stocks Of ITC Hotels Will They Get?

ITC has announced that the hotel business demerger will be effective January 1, 2025. The company would retain a 40per cent stake in the newly listed ITC Hotels while the remaining 60per cent would be given to ITC shareholders as per their holding.

“We write to advise that the Company and ITC Hotels Limited (ITCHL) have mutually agreed to fix Monday, 6th January 2025 as the Record Date to determine the shareholders of the Company to whom equity shares of ITCHL would be allotted amongst ITC Limited and ITC Hotels Limited and their respective shareholders and creditors", as per exchange filing.

ITC Demerger: Shareholder's Key Dates

The company has fixed January 6, 2025, as the record date for ascertaining the eligible shareholders to be allotted ITC Hotels shares. A record date is a date when the shareholders of a company must have the shares in their Demat account to receive the benefits, In this case, the share of ITC hotels.

The ex-date, at which the stock starts trading ex the spin-off benefits, is also January 6, 2025. The eligible investor needs to buy ITC shares on or before January 3, 2025, to be eligible for ITC Hotels shares.

ITC Demerger: Share Distribution Ratio

For every 10 ITC shares held by the shareholder, they would get one ITC Hotels share. This way, the ratio ensures an equitable distribution among the eligible investors.

As of the latest trading session, ITC's share price was at  Rs 478.90 on the BSE with a market capitalization of  Rs 5,99,185.81 crore.
This demerger is a significant restructuring move that gives ITC shareholders direct access to ITC Hotels' future growth potential.

ITC Share Price Today

December 30, 2024, As of today, on the BSE, the stock price of ITC Limited was about  Rs 477.10. Throughout the day, the stocks went as low as  Rs 476.00 and as high as  Rs 481.45. From the past 52 weeks, the stock has given both a low of  Rs 399 and a high of  Rs 529.