#20250226238561… Ticket closed but Avg. Price is not updated. Kindly check and resolve @Rakshit17
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As per the cost of allotment determined by the company, Your buy avg for ITC Hotels is updated correctly.
Your doubt regarding how the buy average is so higher whenever listing happened at lower levels is mainly due to the cost of acquisition formula that the company formulated.
I’ll share a simple example as to how the company calculated:
Let’s assume you bought 100 shares of ITC at 400 rs… Cost = 40,000
The company determined that, your 100 shares will be divided into 2 parts:
ITC Ltd: 86.49% and ITC Hotels: 13.51%
So, now you will have
-
100 ITC shares at an avg price of 345.96 ~ 100*345.96 (86.49% of 400) = Rs/- 34596
-
10 ITC hotel shares at an avg price of 540.4 ~ 10*540.4 (13.51% of 400 * 10 = 4000) as per demerger ratio ) = Rs/- 5404
Total cost = 40000
Note: The net effect will be the same, and you will not have any investment loss on account of demerger and the subsequent buy average calculation
If there was no 1:10 demerger ratio, you would have received 100 ITC hotel shares at 54.04 average price, instead, you received 10 ITC hotel shares at 540.4 average.
Why does the cost of acquisition per share vary for different individuals? Instead of referring to a 10-share illustration, please provide the cost per share post-demerger for my holding.
Holding details:
ITC Hotel: Number of shares: 70 Average buy price: 427.69
These are my original buy prices. Did the average price for ITC decrease for me after the demerger? If so, why hasn’t it been updated?
So since the current stock price of ITC Hotel is below the acquisition price post-demerger and if we sell it out, that would be leading to net investment loss in ITC Hotels, & so that be counted as short-term capital loss ? Is my understanding correct ?
That’s right, as per my understanding.
@Quicko , can you please confirm if @drsthakrar’s understanding is correct?
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@Meher_Smaran
Hi, My ITC Shares Buy Avg Price is still not updated in Kite/Console to reflect 86.49% cost of allotment post De-Merger of ITC & ITC Hotels.
I’ve created a ticket ( #20250301820988) on March 1st 2025 for same which is still not sorted out, Please help resolve?
I have 5 ITCHOTELS stock at AVG(579.4)
I have already opened the ticket “20250322918634”.
And I got response from the support-agent as below:
“Please be assured that the stock holdings average details for ITC Hotels Limited have been updated accurately according to the cost of acquisition, and no further modifications are necessary. However, the buy average for ITC Ltd still needs to be adjusted. We will inform you once it has been updated. We hope this addresses your query.”
Still not able to understand, how is this considered as already corrected ?
Will fixing ITC stock will fix ITCHOTEL value ?
I had raised a ticket #20250301410885 for ITCHOTELS buy average price update. The ticket is addressed and closed now. But, I was informed in the ticket - “However, please note that the buy average for ITC Ltd has not been adjusted yet. We will inform you as soon as this update is made.”
Its been more than 3 weeks now, I don’t see any update on the ITC buy average adjustment. Please advise.
Hi, apologies for the delay. Having this checked.
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It’s been too many days, but still the ITC buy avg is not updated. I had raised an ticket 20250303383131 but it was closed saying it will be updated, But it’s not. Please advise.