One of the most anticipated events on Dalal Street is the eagerly awaited listing of ITC Hotels as a separate company. The hotel division is preparing for its stock market debut following its demerger from ITC. On January 1, 2025, ITC Hotels formally completed its demerger, freeing up its hotel sector to concentrate on its expansion plan. The listing procedure usually takes place at any point throughout the next sixty days. There is talk, though, that ITC Hotels would list before Budget.
ITC Hotel:
The company’s shares will probably be offered on Indian stock exchanges before the Union Budget 2025, according to a report by NDTV that quoted a source with knowledge of the situation. On February 1, 2025, the Union Budget 2025 is expected to be unveiled. Following the Modi government’s third consecutive term in office in 2024, this would be the eighth consecutive Union Budget that the Sitharaman administration has delivered. To remind our readers, the listing date has not yet been formally confirmed.
What Price will ITC Hotels List at?
According to Nuvama Research, the shares would list for about Rs 200 each, with a 20% Holdco discount possible. They anticipate the hotel industry will be valued at around Rs 42000 crore.
A special pre-open trading session was organized on January 6 to modify the Price of ITC’s stock after the demerger. The Price of ITC’s shares on the NSE closed at Rs 455.60 after being modified by Rs 26. The Price was raised to Rs 455 on the BSE by a change of Rs 27.
The record date for ITC HHotel’s stockholders was also included in this session. Qualified investors were given equity shares based on their interests in ITC Limited. The firm has finished all required procedures, including share allocation and price discovery, before the formal listing on the Indian bourses.
Regulatory Updates:
ITC declared on January 11 that, as part of the demerger agreement, more than 125 crore equity shares worth Rs 1 apiece will be distributed to shareholders.
The company also stated in its regulatory filing that, by the Scheme of Arrangement between ITC Limited and ITCHL and their respective shareholders and creditors Sections 230 to 232, read with the other applicable provisions of the Companies Ac, 2013, the Board of Directors of ITCHL, at its meeting today, January 11, 2025, allocated 125,11,71,040 equity shares of Rs 1/-each to the shareholders of the Company as of the Record Date, January 6, 2025.
“ITCHL will submit the required application or applications to list its equity shares; these shares will stay frozen until the Stock Exchanges grant listing or trading permission,” the business stated in the exchange filing.
In addition to generating wealth for shareholders, ITC Hotels’ listing will guarantee that the hotel division stays included in critical international indices like the FTSE and MSCI.
