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ITC Hotels Shares to List on January 29: Allotted 125.11 Crore Shares

Written by: Sachin GuptaUpdated on: Jan 28, 2025, 5:10 PM IST
ITC Ltd through an exchange filing stated that ITC Hotels shares to commence trading on NSE and BSE on January 29, 2025.
ITC Hotels Shares to List on January 29: Allotted 125.11 Crore Shares
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

On January 27, 2025, the National Stock Exchange (NSE) announced on Monday, January 27, that the shares of ITC Hotels Ltd., which was spun off from its parent company ITC Ltd., will start trading on Wednesday, January 29.

Shareholders of ITC Ltd. will receive 1 share of the newly independent ITC Hotels for every 10 shares of ITC Ltd. they held.

As of the latest data, the price discovery for ITC Hotels shows ₹260 per share on the NSE and ₹270 per share on the BSE. A further price discovery session will take place on January 29, 2025.

Impact on Nifty 50 and Sensex

According to the latest calculations, assuming the stock price remains around ₹260, the passive flow for Nifty 50 could be around $100 million (with a current weight of 23 basis points), while for Sensex, the flow could be around $65 million (with a current weight of 28 basis points). If the stock reaches circuit limits on its first day of trading, its exclusion will be delayed by two trading days for each instance.

ITC Hotels will not be included in the Futures & Options (F&O) segment due to its lack of a 6-month trading history, which is a prerequisite for inclusion in the segment.

Background of ITC Demerger

After approval from the National Company Law Tribunal for the scheme of arrangement of demerger of ITC’s Hotel Business into ITC Hotels (ITC Demerger). For this, ITC set Jan 01, 2025, as effective date while January 6, 2025, as the record date.

The Board of Directors of ITC Hotels Limited at the meeting held on January 11, 2025, has allotted 125,11,71,040 equity shares of ₹1/- each to the shareholders of the Company.

About ITC Hotels

Launched in 1975, ITC Hotels is India’s Pre-eminent Hospitality Chain, embodying the essence of Indian Hospitality & Sustainability. From FY14 to FY24, the revenue from operations of ITC Hotels soared 2.6x from ₹1,198 crore in FY14 to ₹3,103 crore in FY24. As of October 2024, ITC Hotels operates over 140 hotels and nearly 13,000 rooms. The company plans to expand its portfolio to more than 200 hotels and 18,000 rooms by 2030. With a strong net cash position and minimal debt, ITC Hotels is poised for future growth.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 28, 2025, 9:43 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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