True, the 504.4 shown as an example calculation.
Folks, do we think passive fund selling is mostly over for ITC Hotels or there can be few more days of LC ?? Today was a special trading day so does it count for the 3 days cutoff when the stock should be excluded from the index (LC days does not count ) Looking to accumulate
Has BAT already sold? Are they selling via open market or block deal? I don’t think with initial selling pressure, without block deal they would get any buyers…I maybe wrong here….
Only passive index funds are forced sellers. With the price action, looks like passive selling is absorbed.
BAT no disclosures seen so they must be holding for the time being. They had said - "ITC Hotels, definitely there is no intention for us to be shareholders in hotels in India. Let’s be very clear. So, whenever we believe there is the right timing, we’re going to sell it,” Marroco
Price action shouldn’t be the guide. We have to see the volumes.
ITC Hotels was removed from the benchmark Sensex and other BSE indices on Tuesday. The company, which was spun off from ITC, was temporarily included in the Sensex and a few other indices to enable passive funds to rebalance their portfolios.
ITC Hotels began trading separately on January 29. “As ITC Hotels did not hit the lower circuit till the cut-off time, the company will be dropped from all the BSE indices effective prior to the open of trading on Wednesday,” BSE said in a notice.
Shares of the luxury hotel operator last closed at Rs 165, down 4.2 per cent, with over Rs 700 crore worth of shares changing hands. Index trackers had to sell shares worth over Rs 400 crore on account of the stock’s Sensex exclusion. Another Rs 700 crore worth of selling is anticipated when ITC Hotels is removed from NSE Nifty
Surprisingly no discussion of the latest result of ITC. For a stock that has so much hype and following
Any news on BAT selling how much and by when? I coudnt find any till now except an article mentioning vaguely that they plan to exit by 2026 and current worth of stock they hold is around 5400 cr. This is significant equity and looks like an overhang on ITC hotels stock till we know how they sell and to whom they sell?
Nothing to worry about, they won’t sell in open market. Block deal will be easily absorbed by MFs and other Institutions.
While ITC share price stays put, Godfrey Philips is on a wild up and down movement.
yes, rumors.
The Centre is considering raising the [Goods and Services Tax] (GST) on cigarettes and other tobacco products once it stops charging the compensation cess, according to a report by The Economic Times.
Normally if there is ‘no sin tax’ in budget, ITC rips up. The stock has seen 15% correction since budget rise on no sin tax. Looks like the information about the GST was leaked to insiders by company OR by the govt officials and it has been falling relentlessly.
As a growth stock, ITC has been a laggard with single-digit CAGR for Sales and Profits over 5 and 10 years. With the heavy sin tax on cigarettes outside the budget in terms of GST, the company is making a bunch of acquisitions in FMCG including rumours about acquiring MTR foods. FMCG is growing at single digits at 4%, Paper business by 3%, Cigarettes at 6% and the only growing parts were hotels (now gone) at 15% and agri at 11%.
Paperboards is a horrible business with single digit margins, FMCG is also single - digit margin and all the margins are in cigarette business. I think this is just a P/E and dividend play to buy on crashes and sell on highs
Zerodha updated ITC Hotels average cost as 579.13 per share. Is it for me only or for others as well?
I see it updated as Rs 233.36 in Zerodha. So not sure why it would be different to different folks!
You may like to revisit this post in this thread, ITC: "Will"(s) "Gold Flake" assist "Ashirwad" to win "Bingo!"? - #1587 by alg
Yes, It would be different for different folks but it should be as per cost acquisition of ITC shares (13.51% of your original ITC Share buy Price).
They made a mistake here. It should have been 57.913 instead of 579.13. I will raise a ticket if not fixed by tomorrow.
We get 1 itc hotel share against 10 itc share. So itc hotel cost is 57.913×10= 579.13. As per my understanding
They also mentioned that ITC shares cost price gets updated automatically. I still see it didn’t happen. They only updated the cost price of hotels for now which is 13.51% of total cost of acquiring ITC shares divided by number of hotel shares. This is the cost price for each hotel share.
The actual acquisition price of ITC hotels at the time of demerger was 54.04 per share and was communicated by ITC itself. However, the acquisition price for each customer varies depending on when did you buy the ITC shares. I acquired ITC shares long time ago and hence my average cost of acquisition is around 283. Hope this helps.