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ITC Demerger: What Investors Need to Know

26 Dec 2024|
2 min read |
by ICICI Securities Team


ITC Limited, one of India's leading conglomerates, has embarked on a strategic demerger of its hotel business. This move is expected to facilitate a significant value for shareholders, offering a clearer focus on the hospitality sector.

Here are a few important things you need to know about the upcoming event:

What is happening and when?

ITC Limited (ITC) is separating its hotel business into a new entity, ITC Hotels Limited (ITCHL), effective January 6, 2025.

  • Record Date: January 6, 2025

(Record Date refers to the cut-off date on which the company finalizes the shareholders who are eligible for receiving the shares post demerger.)

Impact on Equity Shareholders:

  • For every 10 shares of ITC Limited held as of January 6, 2025, shareholders will receive 1 share of ITC Hotels Limited. Please note that, no additional investment is required to receive these shares.
  • After the demerger, equity shareholders will hold shares in two companies – ITC Limited and ITC Hotels Limited

Impact on MTF Shareholders:

  • A special price discovery session will take place on January 6, 2025 from 9:00 AM to 10:00 AM.
  • Buying and selling of ITC shares will not be permitted during the price discovery session.
  • Squaring off of existing positions in ITC will be allowed after 10:00 AM on 6th January.

Given the anticipated drop in ITC’s stock price investors are advised to maintain sufficient buffer margins to safeguard their positions.

Disclaimer: ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.

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