ITC demerger update: Stock gains over 2% on NCLT approval; details
Source: Business Standard
ITC shares zoom: Shares of FMCG major ITC advanced 2.26 per cent to Rs 514.95 on the NSE, amidst otherwise weak markets on Monday. The northward march in ITC’s stock price followed the company’s announcement that the National Company Law Tribunal, Kolkata Bench (NCLT), has approved the demerger of its hotel business.
“The Scheme will be effective on the first day of the following month after filing of the certified copy of the aforesaid NCLT Order with the Registrar of Companies, West Bengal, and fulfilling other conditions and matters referred to in Clause 28 of the Scheme,” ITC said in an exchange filing. “The Company will advise the Effective Date to the Stock Exchanges in due course.”
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The demerged company, ITC, is a listed company, while the resulting company, ITC Hotels, is presently unlisted. ITC shares are listed on the National Stock Exchange of India (NSE), and BSE.
Established in 1910, ITC Limited is a diversified conglomerate with businesses spanning fast-moving consumer goods (comprising foods, personal care, cigarettes, and cigars, education and stationery products, incense sticks, and safety matches), hotels, paperboards and packaging, agri-business, and information technology. As of October 7, 2024, ITC has a market capitalization of Rs 4,73,467.64 crore on the NSE. The diversified FMCG company is a constituent of the benchmark Nifty50 index.
ITC shares have a 52-week range of Rs 528.50 – 399.35 on the NSE.
Historically, ITC shares have posted a mixed performance, dropping 2.53 per cent in the last five days and 0.35 per cent in the last one month, while gaining 18.84 per cent in the last six months. ITC shares have yielded a return of nearly 10 per cent year-to-date.
At around 2:08 pm, ITC shares were trading at Rs 509.95, up 1.27 per cent from their previous close of Rs 503.55 on the NSE. A total of 12.14 million shares of ITC, worth around Rs 620.9 crore, exchanged hands today.
Meanwhile, the benchmark NSE Nifty was trading at 24,815.55, down 200.85 points or 0.80 per cent, and the BSE Sensex was trading at 81,179.91, down 499.37 points or 0.61 per cent.
First Published: Oct 07 2024 | 2:22 PM IST
