The ITC Limited shares traded at £ 435.55 by £ 4.55 or 1.03 percent on the NSE today at 1.10 pm.
ITC Limited today issued a correction with regard to the illustration of the cost distribution in its demerger communication with ITC Hotels Limited (ITCHL). The company has revised the total acquisition costs for 100 shares of ITCHL to £ 54.040 of the aforementioned £ 50,040 in communication of January 27.
The correction relates to the regulation of the regulation of the National Company Law Tribunal, Kolkata Bench, on October 4, 2024, which came into force of 1 January 2025. Under the regulation, itchl has assigned approximately 125.12 crore shares of £ 1 to ITC shareholders, with a share rights ratio of one ITCHL share share for every ten ordinary ITC shares.
The company has provided updated guidelines for the cost allocation, which states that 86.49% of the original acquisition costs must be attributed to ITC shares and 13.51 percent to ITCHL shares. With the help of an example, for 1,000 ITC shares purchased at £ 400 per share (total costs £ 4.00,000), £ 3.45.960 would be assigned to ITC shares and £ 54.040 to the resulting 100 ITCHL shares.
ITC advised shareholders to consult their tax advisers for specific implications, and noted that the share allocation under the Demerger schedule would not be considered a transfer on the basis of section 47 (VID) of the Income Tax Act, 1961.
