ITC Hotels Listing: ITC Limited, which deals in cigarettes to FMCG business, has separated its hotel business, ITC Hotels Limited. Now this new company is going to be listed in the stock market soon. According to analysts, with the listing this stock can be included in many important global indices. According to a report by Nuwama Alternative and Quantitative Research, ITC Hotels shares may meet the criteria for inclusion in the MSCI Global Smallcap Index based on current estimates. ITC’s shares will remain a part of MSCI Global Standard Index even after this demerger.
The report said that due to this demerger, MSCI will apply Price Adjustment Factor (PAF) on the market price of ITC on January 6, 2025. Since ITC Hotels shares will not commence trading on the ex-date, MSCI is considering temporarily adding a separate security to the Global Standard Index at the time of market close on January 6.
The price of ITC will be calculated by taking the difference between the closing price of January 3 and January 6. ITC will remain in a separate security index till the hotel starts its business. ITC Hotels will be included in MSCI’s Global Smallcap Index at the close of its first trading day.
Will ITC Hotels also be included in FTSE index?
Nuvama Alternative wrote that as per the existing rules, if ITC Hotels is not listed within 20 working days after the record date of demerger i.e. January 6, then it will be delisted from the index. FTSE has not yet made any official announcement in this regard.
What could be the price of ITC Hotels shares?
Nuvama Alternative expects the initial market price of ITC Hotels shares to be between Rs 150 to Rs 175 per share.
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