ITC Hotels Shares Extend Fall, Hit 5% Lower Circuit Today; What Investors Should Know – News18
ITC Hotels’ share price hit the 5% lower circuit on its second trading day. The stock debuted at Rs 188 on the BSE and Rs 180 on the NSE, opening at a steep discount of over 30% compared to its discovered price. The discovered price was Rs 260 per share on the NSE and Rs 270 per share on the BSE.
Despite the debut, the stock saw a significant decline and closed lower on its first day of trading. On the BSE, ITC Hotels shares hit the 5% lower circuit limit, while on the NSE, they ended down by 3.53%.
Demerger of ITC’s hotel business came into effect on January 1, 2025, with January 6 fixed as the record date. The move separated ITC Hotels from the parent entity.
On January 6, the BSE and NSE conducted a special trading session to discover the price for ITC hotels business post demerger.
ITC Hotels was recently demerged from the ITC businesses, to be listed as a separate entity for value unlocking for shareholders. The stock exchanges NSE and BSE held a special session on January 6, 2025, to discover the price of ITC stock, ex-hotel business.
ITC Hotels has allotted 1,25,11,71,040 equity shares of Rs 1 each to ITC shareholders as of January 6, the record date. The allotment was made at a ratio of one fully paid-up share of ITC Hotels for every 10 fully paid-up shares of ITC.
For example, if a shareholder owned 1,000 ITC shares at Rs 400 per share before the demerger, the total cost of acquisition would be Rs 4,00,000. After the demerger, they would receive 100 shares of ITC Hotels. The cost of acquisition would be split, with Rs 3,45,960 (86.49 per cent) attributed to ITC shares and Rs 54,040 (13.51 per cent) to ITC Hotels shares.
a8hddw