ITC Limited — Important, 28-01-2025: General Updates

ITC Limited has revised the communication regarding the apportionment of the cost of acquisition for its Ordinary Shares and Equity Shares of ITC Hotels Limited (ITCHL). The total cost of acquisition for 100 shares of ITCHL is now corrected to ₹54,040 instead of the previously stated ₹50,040.

In accordance with the sanctioned Scheme of Arrangement, effective January 1, 2025, ITCHL has allotted approximately 1,251.17 crore Equity Shares to ITC shareholders in a ratio of 1:10. This means shareholders will need to apportion their total cost of acquisition of ITC shares based on this ratio. For example, if an investor purchased 1,000 shares at ₹400 each, the apportionment would allocate ₹3,45,960 to ITC shares (86.49% of the total cost) and ₹54,040 to ITCHL shares (13.51%).

This communication serves to guide shareholders on the apportionment but encourages them to seek independent tax advice to understand personal tax implications. Investors should monitor how these changes might impact their equity positions and overall investment strategy.