The price reaction was nothing but the average Institutional stock investing philosophy, that to buy on the rumour and sell on the news. Which they have to adhere to as they have to provide periodic returns to their investors. Apart from that there is some holding company discount notion and also there was a bullish run so a correction was overdue.
The folks saying why keep 40%, I would say what would have they done. Either find a buyer right now who was ready to pay the premium price or let the demerged entity be properly established and then at some point after BAT’s intention fructify take a call on Hotel subsidiary. I still see upside to this as ITC’s ratio will be hell lot better than ever.
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