ITC Hotels shares to enter listed space on January 29

ITC Hotels Listing News: Kolkata-headquartered cigarettes-to-hotels conglomerate ITC Ltd on Friday said that stock exchanges BSE and NSE had cleared the listing of its demerged hotels business—ITC Hotels Ltd (ITCHL)—for listing on January 29. The development follows a demerger of ITC Hotels from ITC Ltd that took effect on January 1 with a record date of January 6. ITC Hotels is a wholly-owned subsidiary of ITC Ltd.

After market hours on Monday, ITC Ltd said, in a regulatory filing, that ITC Hotels Ltd (ITCHL) had received approval from both bourses for the listing and trading of its equity shares with effect from January 29.

Earlier on Monday, ITC shares ended 0.3 per cent lower at Rs 440 apiece on BSE amid weakness across Dalal Street.

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Here are a few important things to know about the ITC Ltd-ITC Hotels Ltd demerger:

• The move has separated ITC Hotel from the parent entity, ITC.
• NSE said that the ITC Hotels stock would initially trade under the 'BE' category and would be moved to the 'EQ' category subsequently.
• On January 6, both exchanges conducted a special trading session dedicated to discovering the post-demerger price for the ITC hotels unit.
• As part of the demerger, ITC shareholders will receive one share of ITC Hotels Ltd for every 10 shares of ITC Ltd.
• Overall, existing ITC shareholders will hold 100 per cent of ITC Hotels (about 60 per cent directly and the remainder through their shareholding in ITC).
• While first announcing the demerger, ITC said it expected the country's hospitality industry to clock rapid growth going ahead.
• Launched in 1975, today, ITC's hotels and hospitality business comprises more than 140 hotels spread across 90-plus locations.
• ITC's hotels business is a premier chain of luxury hotels.

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