Today, ITC shares are trending since the stock exchanges (BSE and NSE) are having a special pre-open trading session from 9 am to 10 am. This is for a special reason: ITC Hotels is splitting off from its parent company, ITC Ltd. January 6 is an important date because it’s the day when this split officially starts. This change will impact around 3.6 million shareholders of ITC, which is based in Kolkata.
Even though ITC Hotels shares won’t be listed today, the exchanges will create a temporary ticker for it. This ticker will act like a placeholder until the real shares are listed in a few weeks. For now, no one can buy or sell ITC Hotels shares.
During this special session, the price for ITC Hotels shares will be figured out based on the difference between ITC’s last closing price and the price at the end of this session. The demerger ratio of 1:10 (where shareholders get 1 ITC Hotels share for every 10 ITC shares they own) will also be taken into account.
Some experts think that the price for ITC Hotels shares might range between Rs 150 and Rs 200. Nuvama predicts that ITC’s share price might drop by Rs 22-25 because of this split since ITC holds 40% of the hotel business. Ambit Capital suggests that reasonable value for ITC Hotels could be between Rs 190-220 per share.
Analysts believe that this split will help ITC focus more on its businesses that make more money, like fast-moving consumer goods (FMCG). In the short run, some investors might have to sell their ITC Hotels shares quickly, which could lower the share price. However, experts say that any drop could be a great chance for investors looking to buy a quality business for the long term.
On Friday, ITC shares closed at Rs 482, which was down 1.5%, while the Sensex index also fell by 0.9%. Over the past six months, ITC shares have increased by 12.5% and have gone up 45% in the last two years. Currently, ITC has a market value of approximately Rs 6,03,064 crore.
Note: The views and opinions expressed by experts are their own and do not necessarily reflect the views of thellv.news
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