ITC Hotels Demerger: Parent's F&O Contracts Expire On Jan. 3 Ahead Of Special Trading Session

The derivarives contracts for ITC Ltd. expired on Jan. 3 ahead of the ex-date for ITC Hotels demerger, according to an NSE circular. In other words, all three existing contracts of ITC Ltd., with expiry dates January 30, 2025, February 27, 2025 and March 27, 2025, have now expired. The methodology of settlement shall be separately intimated by respective clearing corporations.

The exchange will introduce new derivatives contracts on ITC with expiry January 30, 2025, February 27, 2025, and March 27, 2025, from January 06, 2025 being the ex-date of the underlying after the special pre-open session that will be held between 9:00 am to 10:00 am to determine the base value of ITC Hotels.

The exchange said that the range of option strikes which would be available for trading on January 06, 2025 (based on the price discovered in SPOS session of the Capital Market segment on January 06, 2025), will be intimated to the investors through a separate circular to be issued on January 03, 2025, after market hours.

ITC has informed the exchanges that the company has fixed record date as January 06, 2025 for the purpose of issuance and allotment of ONE fully paid-up equity share of Re. 1/- each of ITC Hotels Ltd. for every TEN equity share of face value of Re. 1/- each to shareholders of ITC Limited.

Meanwhile, NSE has notfied special pre-open session in the cash markets on Jan. 6. The aim of the session is to arrive at an equilibrium price and all the unmatched orders of the pre-open call auction session within the dynamic price band of the discovered price will be moved to a normal trading session at their limit price.

In the event equilibrium price is not discovered during the 9:00-10:00 am, all orders will be cancelled, and the stock will continue to trade in call auction mechanism until price is discovered.