ITC Hotels demerger comes into effect tomorrow. What's in it for shareholders?
ITC Hotels comes into effect from tomorrow, January 1, but the record date for ITC shareholders would be January 6.
Under the demerger scheme, ITC shareholders whose names will appear in the list of shareholders on January 6 will get one share of ITC Hotels for every 10 units of the parent company.
ITC Hotels said it will issue equity shares directly to the shareholders of ITC in a manner that about 60% stake is held directly by ITC shareholders proportionate to their shareholding in ITC and remaining about 40% stake to continue with ITC.
On January 6, the record date of the demerger, BSE and NSE will have a special trading session to discover the fair price of ITC Hotels.
Assuming that ITC Hotels will list at an EV/EBITDA multiple of 20.0x-30.0x, the share price of ITC Hotels Ltd is expected to list in the range of Rs 113 to Rs 170 per share, shows calculations done by SBI Securities.
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