India`s ITC falls 5% to``discover`` price after hotels business spin off
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Shares of ITC fell about 5% on Monday in a special trading session to "discover" its price after accounting for the foods to tobacco conglomerate spinning off its hotels business into a separate listed entity.
ITC's stock settled at 455.6 rupees at the end of the hour-long pre-open trading session, compared to its unadjusted close of 481.6 rupees on Friday. Now, the stock's last closing will be deemed to have been at 455.6 rupees.
Compared to that adjusted close, ITC's stock was down 1.1% at 450.55 rupees as of 11:03 a.m. IST.
The ITC Hotels spin-off was effective Jan. 1.
ITC shareholders will get one ITC Hotels share for every 10 ITC shares, which values the ITC Hotels at 260 rupees based on the price adjustment.
ITC Hotels' shares are expected to start trading in February, with ITC holding a 40% stake and the rest open to public shareholders.
