Other than the typical market behaviour of buy the rumour, sell the news , the single biggest stress point for investors has been the fact that ITC has chosen not to go for a clean demerger which restricts value unlocking for shareholders.
Shares of ITC extended their recent fall to the third straight session on Tuesday. The stock fell over 3% to hit an intraday low of Rs 455.40 on NSE. The slump comes after the FMCG major announced the much-awaited demerger of its hotels business under a scheme of arrangement. Watch this Visual Story to see if what this demerger means for shareholders. Also, check ITC Hotels expected share price, ITC share price target, and more.
"After due consideration, the Board accorded its in-principle approval to the demerger of Hotels Business under a scheme of arrangement, with the Company holding a stake of about 40% in the new entity and the balance shareholding of about 60% to be held directly by the Companys shareholders proportionate to their shareholding in the Company," ITC said.