BSE, NSE to hold special session for ITC-ITC Hotels demerger: What we know

The ITC Hotels' shares will not be listed on the NSE and BSE immediately after the record date, they are expected to list by mid-February 2025

ITC-ITC Hotels demerger: Monday, January 6, 2025, marks an important day for ITC shareholders. It’s the ‘record date’ that decides who will be eligible to receive shares of ITC Hotels when it gets listed on the NSE and BSE. This follows the long-awaited demerger of ITC Hotels, which took effect on January 1, 2025.

 

ITC share on record date

 

Today, the ITC's share undergoes a pre-open session for price discovery between 9:00 AM and 9:45 AM, followed by the resumption of normal trading at 10:00 AM. 

 

Eligible shareholders will receive ITC Hotels shares in their accounts after the record date. 

 

The ITC stock will remain part of the indices for three trading days. However, if it reaches the circuit limit on the first two days, its removal from the indices will be postponed by three additional days.

 

The Grand Split: ITC’s Vision

 

In a move hailed as bold and forward-thinking, FMCG giant ITC Limited decided to carve out its hotels business into a standalone entity. The logic was simple yet powerful: to allow ITC Hotels to chart its course, focusing solely on growth in the luxury hospitality sector while maximising shareholder returns. 

 

As part of the arrangement, ITC retained a 40 per cent stake in the newly formed ITC Hotels, while the remaining 60 per cent was distributed among its shareholders in proportion to their existing holdings.

 

For every 10 shares of ITC held, shareholders would now receive one share of ITC Hotels.

 

When will ITC shares list?

 

Although ITC Hotels' shares will not be listed on the NSE and BSE immediately after the record date, they are expected to list by mid-February 2025. This timeline aligns with ITC's confirmation that the listing will occur within 60 days of receiving the NCLT order, dated December 16, 2024.

 

ITC F&O bets 

 

In light of the January 6 record date, the NSE previously announced that all ITC Futures and Options (F&O) contracts set to expire on January 30, February 27, and March 27, 2025, would expire early on January 3, 2025.

 

New derivatives contracts on ITC, with expiry dates of January 30, February 27, and March 27, 2025, will be reintroduced starting Monday, January 6, 2025, the ex-date of the underlying stock. 

 

According to the NSE, trading in ITC F&O contracts will begin at 10:00 AM on the ex-date, using the price determined after the completion of the special pre-open call auction session in the Capital Market segment.