ITC hotels demerger: Shares falls 5% to "discover" price after hotels business spin off

Shares of ITC fell about 5% on Monday (January 6, 2025) in a special trading session to "discover" its price after accounting for the foods to tobacco conglomerate spinning off its hotels business into a separate listed entity.

ITC's stock settled at ₹455.6 at the end of the hour-long pre-open trading session, compared to its unadjusted close of ₹481.6 on Friday. Now, the stock's last closing will be deemed to have been at ₹455.6.

Compared to that adjusted close, ITC's stock was down 1.1% at ₹450.55 as of 11:03 a.m. IST.

The ITC Hotels spin-off was effective Jan. 1.

ITC shareholders will get one ITC Hotels share for every 10 ITC shares, which values the ITC Hotels at ₹260 based on the price adjustment.

ITC Hotels' shares are expected to start trading in February, with ITC holding a 40% stake and the rest open to public shareholders.