Release of ITC Hotels to be effective today: ITC will become part of SPOS on Jan 6; Nuvama is looking at listing ITC hotels at Rs 150-175/ per share

After ITC’s hotels business has been spun off into separate entity ITC Hotels (ITCHL) effective today, its stock is trading with marginal gains of 0.47 percent. Further to the record date of the split which is set as January 6, the stock will be part of the special pre-opening session or SPOS.

Now that the National Company Law Tribunal- Kolkata has already given its nod to the rollback process- the stock of ITC Hotels is expected to enter the listed area in another 30-40 days.

The Company has received a certified copy of the Order of Hon’ble National Company Law Tribunal (‘NCLT Order’), Kolkata Bench, approving the Scheme on December 16, 2024 and as per the SEBI Circular dated June 2023, the shares of the demerged entity. – ITC hotels will be listed within 60 days from the date of receipt of NCLT Order.

How will the price of ITC hotels be determined until listing?

According to Nuvama Alternative and Quantitative, ITC Hotels will be reflected in Nifty and Sensex until it is listed at a fixed price i.e. the difference between the closing price of ITC on January 3, 2025 and its opening price during the SPOS session on January 6.

In addition, it will rank 51st in the Nify50 index and 31st in the Sensex.

Besides, the stock will continue to be part of both the subject indexes for 3 days after listing. After this period, the stock will be removed from the indices. Note, in case the stock reaches regional limits, the release will be delayed by two trading days each time.

ITC Hotels awaited listing price

Domestic brokerage Nuvama expects a price correction of between Rs 22-25 for ITC on the previous day of launch i.e. January 6. Additionally, the brokerage expects the delisted business -ITC Hotels to enter D-Street at a price between -Rs 150-175 per share.