ITC hotels unit stock expected to be valued in ₹15-27 range; here's what analysts have to say on ITC demerger

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ITC Hotels' share price to range between ₹15 to ₹27 after demerging its hotel operations into a new firm, named ITC Hotels where it will hold 40% ownership and the remaining 60% will be controlled by shareholders directly. ITC share price was down on Tuesday's trade for the second consecutive session. ITC stock price opened at intraday high of ₹469.95 apiece on BSE.

“Post the demerger news, the ITC stock price have seen profit booking from yesterady's session, considerign the momentum there may be further profit booking in the near term. Next support is seen around 443 i.e. the recent swing low , ideally prices should hold this level to resume uptrend.

480 is considered as resistance on immediate basis," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One. The National Company Law Tribunal's (NCLT) scheme of arrangement was given in principle permission by the ITC board on Monday to demerge its hotel operations with the incorporation of a wholly owned subsidiary, named ITC Hotels Ltd. The management call set on Thursday, July 27th, would provide more details regarding the arrangement.

At the board's subsequent meeting, which will be held on August 14, the arrangement's plan will be presented for approval. ITC share price continues to fall for second day after hotel business demerger The demerger of the hotel business is advantageous for ITC, according to Centrum Broking's analysis. The research states that while ITC spends roughly 20% of its capex on this area, the hotel industry provided 3.7% of the company's total sales and 2.3% of its EBIT in FY23.