ITC Hotels made its stock market debut on January 29, listing at Rs 180 per share on NSE—a 31% discount from its implied price of Rs 260 per share. On BSE, the stock debuted at Rs 188 per share, marking a 30% discount from its implied valuation of Rs 270 per share. The company’s market capitalization now stands at Rs 37,461 crore based on exchange data.
The listing occurred after ITC Ltd decided to demerge its hotel business into a separate listed entity to unlock shareholder value. The demerger ratio is fixed at 1:10, which meant that ITC shareholders receive one ITC Hotels share for every 10 shares held as on January 6, 2025.
Under the demerger scheme, 60% of the equity in ITC Hotels is now directly held by ITC shareholders, while the remaining 40% stays with ITC Ltd.
In the pre-listing trading session on January 6, the post-demerger price of ITC Ltd was fixed at Rs 455 per share, which is a loss of Rs 27 per share because of the separation of the hotel business. Pursuant to the said demerger, investments held by ITC in its wholly owned Hospitality Subsidiaries, viz., Fortune Park Hotels Ltd, Bay Islands Hotels Ltd, Srinivasa Resorts Ltd, Landbase India Ltd, WelcomHotels Lanka Pvt Ltd, Gujarat Hotels Ltd, International Travel House Ltd, and Maharaja Heritage Resorts Ltd stand transferred to and vested in ITC Hotels Ltd.
Market analysts will, therefore, keep a close eye on the stock’s movement for the next few days, which will gauge its valuation.
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Source: Moneycontrol
News Desk
