The stock hit the lower circuit of 5% at Rs 178.60 on the BSE.
The demerger of ITC's hotel business became effective on January 1st. Under the demerger scheme, shareholders will receive one equity share of ITC Hotels for every 10 shares of ITC held, with ITC retaining a 40% stake in the newly demerged entity. The remaining 60% will be distributed among existing shareholders in proportion to their ITC holdings.
ITC Hotels will operate with a debt-free balance sheet and intends to accelerate growth and explore selective inorganic opportunities. ITC Hotels is a leading chain with over 140 hotels across 90 destinations, encompassing six distinct brands.