ITC share price continues to fall for second day after hotel business demerger
ITC share price continued its downward movement for the second staright day on July 25, a day after the company officially announced the demerger of its hotel business. ITC shares opened at ₹469.95 against yesterday's close of ₹470.90 on BSE, and then fell further to hit a low of ₹455.95.
At the time of writing this copy, the ITC share price was down ₹13.75, or 2.92%, to ₹457.15. “After due consideration, the board accorded its in-principle approval to the demerger of the hotels business under a scheme of arrangement, with the company holding a stake of about 40 per cent in the new entity and the balance shareholding of about 60 per cent to be held directly by the company’s shareholders proportionate to their shareholding in the company," ITC said in a regulatory filing on July 24.
After the announcement, the ITC shares fell 4% as investors did not take the demerger details in a positive way. Why is ITC stock falling? ITC will still hold 40% stake in the hotels subsidiary that is being demerged, analysts feel that investors are seeing this as partial value unlocking for the parent company.
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