The demerger process was successfully completed following the approval from National Company Law Tribunal (NCLT) on April 27, 2023, which came into effect on May 18, 2023. Shareholders of Edelweiss Financial Services have received their allotted shares of Nuvama Wealth Management, making them shareholders of Nuvama.
Actually it does not matter what is the share entitlement ratio and let me explain you why. See, this is a demerger where all the shareholders of ITC will have direct and indirect 100% economic ownership in the new ITC Hotels business. So what the company is doing is that they are demerging the ITC Hotels into a separate wholly owned subsidiary.
The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the demerger of K Raheja Groups subsidiary K Raheja Corporate Services following the realty conglomerates application in order to access the capital markets through a listing of the same.
And that is one more reason why the stock is probably down. So I think both in the news, as well as the expectations in terms of being held by 40% by the parent company itself, entailing a holding company discount for minority shareholders.