ITC Hotels is in focus. It has been demerged from FMCG-major ITC. The ITC stock goes ex-demerger on January 6. The listing process of ITC Hotels is expected to be fast-tracked. According to brokerage firm Nuvama Wealth Management, ITC Hotels may be listed in a month (or even earlier). However, there is no concrete listing day yet and it may take a few weeks to get all the listing approvals.
For a rough estimate, one can consider the timeline of Jio Financials’ demerger from Reliance Industries which took 33 days, Piramal Pharmaceuticals took 45 days, and NMDC Steel got listed after almost 4 months from the record date.
ITC Hotels expected listing price
The brokerage house said that the initial trading price for the stock of ITC Hotels could be between Rs 150 to Rs 175 per equity share. The price of ITC Hotels will be calculated based on the difference between the closing prices of ITC on January 3 and an open price of ITC discovered during the SPOS (special pre-open session) on January 6.
The brokerage firm, Nuvama Wealth, said that it sees an adjustment of Rs 18 to the stock price post-demerger of the hotels business. It is the last day to buy ITC shares before the stock trades ex-demerger on January 06. The stock has fallen 1.12% to an intra-day low of Rs 483.05.
“On January 6, 2025, the ex-date for the demerger, ITC’s share price is expected to be adjusted by Rs 22-25, reflecting its 40% stake in the hotel business and incorporating a 20% holding discount. According to our FMCG team, the adjustment is expected to be Rs 18 per share,” said Nuvaman Wealth.
The investors might be curious whether ITC Hotels will be introduced for derivatives trading as well. According to the current methodology, a stock needs to have a trading history of as minimum as six months to qualify for derivative inclusion and after that SEBI’s nod.
ITC Vs Nifty 50
The FMCG-major ITC has risen 1% in the last five trading sessions. The stock has given a return of 2.5% in the past one month and more than 13% in the previous six months. The company which spun off its hotels business has increased 0.23% from year to date.
To compare, the benchmark index, Nifty 50 has risen 1.5% in the last five trading days. The index has wiped out 1.4% in the last one month and 0.68% in the past six months. However, the Nifty 50 has increased 2% from year to date.