Daijiworld Media Network - New Delhi

New Delhi, Jan 6: ITC Ltd shares opened at Rs 455 each, reflecting a 5.6 percent drop (down Rs 27) from the previous session's closing price, following a special pre-open session for price discovery. This comes as the conglomerate spins off its hotels arm into a separate entity.

ITC Hotels listing and trading dynamics

For the initial listing day and three subsequent business days, ITC Hotels will remain part of all NSE and BSE indices at a fixed price. If the stock hits its circuit limits during this period, its exclusion from the indices will be postponed by two trading days for each limit hit.

While the special pre-open session has set a placeholder price for ITC Hotels, traders and investors will only be able to begin trading the stock after its official listing on the exchanges.

Demerger details

Under the demerger scheme, shareholders of ITC will receive one equity share of ITC Hotels for every 10 ITC shares held. Post-demerger, ITC will retain a 40 percent stake in ITC Hotels, with the remaining 60 percent being distributed among existing shareholders based on their holdings in ITC.

Expected valuations

According to market experts, ITC Hotels is expected to attract higher valuations post-listing, reflecting its growth potential as an independent entity.

Nuvama estimates the initial market price of ITC Hotels to range between Rs 150-175 per share.

Sharekhan projects a similar price range of Rs 150-170 per share.

Nomura, the Japanese brokerage, offers a more optimistic estimate, suggesting a listing price between Rs 200-300 per share, which could result in a market capitalization of Rs 42,500 cr to Rs 62,200 cr.

Adjustments to ITC's share price

ITC’s share price has been adjusted by Rs 22-25, accounting for its 40 percent stake in ITC Hotels and factoring in a 20 percent holding discount, according to Nuvama.