ITC shares continue to fall; What should investors do next?, know expert advice – itc share price hotel company stocks slip 4 percent in todays trading heres what brokerage says on itc demerger
The shareholders will be allotted shares in the new company in proportion to their holdings. Presently the scheme will be presented in the board meeting of the company on 14th August 2023 for further approval. Official announcements and public disclosures will then be issued under SEBI’s listing rules and regulations. Currently, what will be the effect of this merger on the company’s share, what will be the valuation of the new company, know the opinion of the brokerage. The brokerage house expressed confidence in ITC’s stock, saying the proposal to spin off the hotel business reflects an accelerated capital allocation strategy.
Brokerage House JM Financial
Brokerage house JM Financial has bullish on ITC shares with BUY rating and a target of Rs 565. After demerger the hotel business will be better able to grow and compete better with the leading companies in the sector. Such is the opinion of the brokerage.
Brokerage House Jefferies
Brokerage house Jefferies says ITC will hold 40 percent stake in the new company, while shareholders will hold 60% directly. The decision will not have any major impact on ITC’s share price, with the brokerage targeting Rs 530 with a buy recommendation on the shares.
Brokerage House Morgan Stanley
Brokerage house Morgan Stanley gave an overweight rating on ITC shares and set a target of Rs 474 for Hotels. The brokerage sees divestiture of the hotel business as a positive sign for ITC. Morgan Stanley believes that the move will help ITC’s hotel business plan its growth.
Brokerage House Goldman Sachs
Brokerage house Goldman Sachs also has a positive view of the merger. The brokerage has set a target price of Rs 470 for ITC.