ITC shares focus: A special pre-opening trading session will begin at 9 am

Shares of tobacco-to-FMCG conglomerate ITC took a hit today (January 6) as the company’s hotels business ITC Hotels will be spun off from its debt-ridden parent company. A special pre-opening session will be conducted on the stock between 9:00 am to 10:00 am to determine its prices and normal trading will resume on Nify heavyweight at 10:00 am.

The special pre-opening session (SPOS) is a one-hour window (9 AM–10 AM) to help determine the adjusted price of ITC (the parent company) after the demerger of the hotel business. This ensures that the market price reflects the segmentation correctly and clearly.

For ITC hotels, the price will be calculated as the difference between the ITC closing price on January 3, and the ITC price received during SPOS.

This process helps to find a fair value for ITC Hotels shares before they start trading officially.

Under the split plan, ITC shareholders will be eligible to receive 1 share of ITC Hotels for every 10 shares they hold. Accordingly, ITC will hold 40 percent of the business of the newly demerged hotels and the remaining 60 percent will be held by existing shareholders in proportion to their holdings in ITC.