ITC Shares Trade Ex-Demerger: What It Means for Investors

ITC’s Hotels Demerger Takes Effect

ITC shares are now trading ex-demerger, reflecting the separation of its hotels business. Following a special trading session for price discovery of ITC Hotels shares on January 6, the market assigned ITC a price of ₹455.60 on the NSE and ₹455 on the BSE. This adjustment marks a critical milestone for ITC shareholders and new investors alike, offering unique opportunities and strategic considerations.

Key Highlights of ITC’s Ex-Demerger Trading

Price Adjustment Post-Demerger

• ITC shares were adjusted lower by ₹26 (5.4%) to ₹455.60 on the NSE and by ₹27 (5.6%) to ₹455 on the BSE.
• A special pre-open session (SPOS) from 9:00 am to 9:45 am on January 6 discovered ITC Hotels’ stock price.

ITC Hotels Demerger Ratio

Shareholders will receive 1 ITC Hotels share for every 10 ITC shares held. ITC Hotels’ listing date is yet to be announced.

Trading Dynamics and Market Implications

ITC Hotels Inclusion in Indices

• ITC Hotels will temporarily maintain a constant price for weight calculations in the Nifty 50 and Sensex.
• Live market capitalization and trading will reflect after ITC Hotels lists and completes three trading days.

Investor Insights on ITC Share Performance

According to market experts, ITC shares are forming a robust base:

• Support Zone: ₹430 to ₹450.
• Target Levels: ₹480 in the near term and ₹520 if it breaks ₹480 on a closing basis.

Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, advises both current and fresh investors to consider buying on dips in the ₹430–₹450 range while maintaining a stop loss at ₹400.

Should You Buy ITC Shares Now?

For Existing Shareholders

Existing ITC shareholders should hold their investments, as the company maintains strong fundamentals and offers growth potential post-demerger.

For Fresh Investors

Fresh investors can look to accumulate ITC shares on dips between ₹430 and ₹450 with a target price of ₹480–₹520, ensuring they adhere to a strict stop loss.

ITC Hotels Demerger: Key Details

Record and Effective Dates

• Record Date: January 6, 2025.
• Effective Date: January 1, 2025.

Impact on Shareholders

The 1:10 demerger ratio ensures ITC shareholders benefit from the separate listing of ITC Hotels. The company’s diversified portfolio, now split, creates potential for more focused growth in each segment.

Post-Demerger Outlook for ITC

Growth Opportunities

The demerger positions ITC to focus on its core businesses, including FMCG, tobacco, and agribusiness, while ITC Hotels operates as a standalone entity. This specialization could drive improved operational efficiencies and market valuation.

Potential for ITC Hotels

While the market awaits the official listing of ITC Hotels, its inclusion in indices like Nifty 50 and Sensex highlights its significance. Upon listing, its live market cap will influence its index weight, further boosting investor interest.

The ITC Hotels demerger represents a pivotal move for ITC, allowing it to unlock value across its businesses. For investors, this development opens opportunities to capitalize on both ITC’s diversified portfolio and the potential growth of ITC Hotels as an independent entity. With strategic accumulation and a watchful eye on market movements, investors can leverage this transition to maximize returns.