ITC Limited, one of Indias 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.