ITC Demerger: Unveiling New Horizons in Hospitality

ITC's shares dropped as the company's hotel division spun off, now trading separately. Shareholders will receive one share of ITC Hotels for every ten of ITC, with expectations of growth in the luxury hospitality sector. The strategic move aims to enhance shareholder value and operational efficiency.

In a strategic financial maneuver, ITC's shares experienced a near 3 per cent decline following the company's highly anticipated demerger of its hotel division, marking a new beginning for the luxury hospitality sector.

As ITC Hotels began trading separately, the shares ended at Rs 442.50 on the BSE, with the demerger officially taking effect on January 1, 2025. The price discovery phase revealed a share value of Rs 455.60 for ITC Hotels.

Shareholders can expect to receive one ITC Hotels share for every ten ITC shares, as the parent entity aims to unlock substantial shareholder value and streamline operations, cementing promising futures for both businesses.

(With inputs from agencies.)