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The company has fixed January 6 as the record date for the demerger of the hotels business. This means that Friday is the last day to buy shares of the company and have it in your demat account to be eligible for the demerger ratio for the hotels business.
Similar to Jio Financial Services, ITC Hotels will be the 51st Nifty 50 stock and the 31st stock on the Sensex and will be considered daily in the index weightage calculations.
Nuvama Alternative believes that on the ex-date of the demerger, which is January 6, 2025, ITC’s share price is likely to be adjusted by ₹22 – ₹25 per share, reflecting its 40% stake in ITC Hotels and after incorporating a 20% holding company discount. Nuvama’s FMCG team, the adjustment is expected to be ₹18 per share.
Nuvama Alternative expects the initial market price for shares of ITC Hotels to be between ₹150 – ₹175 per share.
In a note on Tuesday, December 31, SBI Securities said that the hotels business has a long runway to capture the growth opportunities in the tourism industry of India.
“Assuming that ITC Hotels will list at an Enterprise Value to EBITDA multiple between 20 times to 30 times, the shares of ITC Hotels are likely to list in the range of ₹113 to ₹170 per share.
Shares of ITC are currently trading 1.5% lower on Friday at ₹482.35.
