Blog Title: ITC Hotels Demerger: What Investors Need to Know
Introduction
The much-anticipated demerger of ITC Hotels from ITC Ltd. is making waves in the business world. Following a special pre-open session on January 6, 2025, ITC's discovered price was Rs 455.6, reflecting a drop of Rs 27. As ITC Hotels prepares for its separate listing, experts are predicting potential listing prices and analyzing market trends. Here's everything you need to know about this landmark event.
What Happened During the Pre-Open Session?
The special pre-open session held for ITC Ltd. resulted in a discovered price of Rs 455.6. This represents a decline of Rs 27, marking a notable impact on ITC’s stock price post-demerger. Investors, however, will not be able to trade the dummy version of ITC Hotels stock following this session.
Expected Listing Price of ITC Hotels
Market experts have shared varying opinions on ITC Hotels' expected listing price:
Nomura: The stock is predicted to list in the range of Rs 200–300.
Nuvama Institutional Equities: A more conservative estimate places the price between Rs 150 and Rs 175.
The difference in these predictions highlights the uncertainty surrounding the newly demerged entity, especially in its initial days of trading.
Key Insights for Investors
- Focus on Hospitality Growth: ITC Hotels' demerger is expected to unlock value by allowing the company to focus entirely on the hospitality business. Investors should look at its growth potential in the hotel industry.
- Impact on ITC Ltd.: With the demerger complete, ITC Ltd. can concentrate on its core businesses, such as FMCG and tobacco, which may positively influence its long-term performance.
- Market Volatility: As with any demerger, short-term volatility in stock prices is expected. Investors are advised to analyze the fundamentals and not make hasty decisions.
Stay Cautious of Scams
Moneycontrol has issued a warning to investors regarding fraudulent schemes. Certain individuals are falsely claiming to be affiliates of Moneycontrol and promising assured returns. Investors are urged to remain cautious and report any such activities immediately.
Conclusion
The demerger of ITC Hotels marks a significant milestone for both ITC Ltd. and the hospitality industry. While the market adjusts to the change, investors should focus on the long-term potential of ITC Hotels as a standalone entity and ITC Ltd.’s refocused growth strategy.
Stay tuned for updates on ITC Hotels’ official listing and how it performs on its debut!
Reference from:- https://www.moneycontrol.com/news/business/markets/itc-shares-in-focus-as-itc-hotels-gears-up-for-special-pre-open-session-today-12903807.html