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ITC Shares on Record Date: Today, ITC shares will endure a pre-opening session for worth discovery
ITC Share Price
ITC-ITC Hotels Demerger: Monday, January 6, 2025, is a major day for ITC shareholders because it marks the ‘document date,’ figuring out eligibility for receiving shares of ITC Hotels when it will get listed on the NSE and BSE. This follows the long-awaited demerger of ITC Hotels, which turned efficient on January 1, 2025.
ITC Shares on Record Date: Today, ITC shares will endure a pre-opening session for worth discovery between 9:00 AM and 9:45 AM, after which regular buying and selling will resume at 10:00 AM.
Eligible shareholders will obtain shares of ITC Hotels of their accounts publish the document date.
ITC shares will stay a part of the indices for 3 buying and selling days. However, if the inventory hits the circuit restrict on the primary two days, its removing from the indices might be delayed by a further three days.
ITC Share Price Expected to Decline After Demerger
Following the demerger, the worth of ITC shares is anticipated to regulate beneath a particular name public sale session. The worth of ITC Hotels shares might be calculated primarily based on the distinction between ITC’s final closing worth and its settling worth on the finish of the session, factoring within the 1:10 demerger ratio.
Nuvama initiatives an adjustment of Rs 22-25 to ITC’s share worth, reflecting its 40% stake within the lodge enterprise and accounting for a 20% holding low cost.
ITC will situation one ITC Hotels share for each ten ITC shares held by unitholders as of the document date, Monday. ITC will retain a 40% stake within the lodge enterprise as a part of the demerger deal.
Most brokerages estimate that ITC Hotels’ share worth will vary between Rs 150-200 per share. According to Ambit Capital analyst Karan Khanna, “Assuming an ~18% EBITDA CAGR (FY24-26E; vs 20%+ for friends) and a 15-25% low cost to IHCL valuations (on account of decrease scale), the truthful worth is anticipated to be between Rs 190-220 per share (+/- 5%).”
Analysts recommend that the demerger permits ITC to sharpen its deal with high-margin sectors like FMCG, the place EBITDA margins rose to 10% in FY24 and are projected to achieve 12% by FY26.
In the brief time period, there could also be some downward stress on ITC Hotels’ inventory worth, particularly if sure shareholders, corresponding to ETFs, are pressured to exit. However, SBI Securities believes that any momentary decline within the inventory worth presents a shopping for alternative for retail and HNI buyers trying so as to add a high quality enterprise to their long-term portfolios.
Operating independently, ITC Hotels will focus completely on the hospitality sector, adopting asset-light fashions to spice up profitability. On the opposite hand, ITC is well-positioned for a possible re-rating on account of its extra streamlined and targeted enterprise construction, based on Satish Chandra Aluri of Lemonn Markets Desk.
