ITC Hotels Listing: The wait is finally over! The much anticipated listing of ITC Hotels has got the green light and the stock will make its share market debut on NSE, BSE tomorrow- January 29. ITC in a regulatory filing on Monday (January 27) said, “We write to advise that ITC Hotels Limited (ITCHL) has informed us today that ITCHL has received approval from the National Stock Exchange of India Limited and BSE Limited for listing and trading of its equity shares effective 29th January, 2025.”
Ahead of the listing of ITC Hotels, let’s take a look the key points that shareholders need to keep in mind-
1. What price will ITC Hotels list at
There is no clear indication of the ITC Hotels shares price yet. Different analysts have different projections. Overall, the expectation is that the share price can list anywhere between Rs 113 to Rs 170 a share price. Existing market sentiment and the global uncertainty will also play a part in determining the final share price. Currently it is a wait and watch approach till 9:15 tomorrow.
2. Brokerage views on ITC Hotels
Most brokerage houses are waiting for the listing to put out their views on the stock. However, earlier last week Nuvama had put out a report highlighting that the ITC Hotels share could potentially list closer to the Rs 200 per share mark.Nomura anticipates a range of Rs 200-300 a share while SBI Securities suggests a price band of Rs 113- 170.
3. ITC Hotels listing time and other details
ITC Hotels is all set to make its debut as a standalone company on the BSE and NSE on January 29. Investors are awaiting the listing, with the market opening at 9:15 AM tomorrow.
4. Will ITC Hotels trade on Nifty, Sensex
ITC is a Index Heavyweight but will ITC Hotels also trade on the Benchmark indices? Well, ITC Hotels be part of benchmark indices for 3 trading days. After that it will be excluded. However, the timeline may be altered if the stock hits circuit limits during the time.
5. Demerger of ITC Hotels
The demerger of ITC Hotels from its parent company ITC was completed on January 1, 2025. This move allows ITC Hotels to operate as a standalone entity. Moreover, it will also allow the company to focus entirely on its hospitality business.
Despite the demerger, ITC continues to hold a 40% stake in the company, with the remaining 60% distributed among existing ITC shareholders.
6. Special pre-open session: Price adjustment
A special pre-open trading session on January 6, established the adjusted price for ITC shares following the demerger. On NSE, ITC’s share price was reduced by Rs 26 to Rs 455.60, while on BSE, the adjustment was Rs 27, bringing the price to Rs 455 per share.
7. ITC Hotels Share allotment details
On January 11, ITC allotted 125.11 crore equity shares of ITC Hotels to its shareholders.
According to the exchange filing, “The Board of Directors of ITC Hotels Limited has allotted 125,11,71,040 equity shares of Rs 1/- each to the shareholders of the company as on the record date, January 6, 2025.”
8. ITC Hotels share allotment ratio and distribution
The allotment ratio was set at 1:10. This means that for every 10 shares of ITC held by a shareholder as of January 6, they received one share of ITC Hotels. The allotted shares are currently marked as “dummy tickets” and will be tradeable once the listing goes live.
9. Impact on ITC’s market capitalisation
The demerger has realigned ITC’s market capitalisation, impacting its diversified focus. ITC shareholders now hold a stake in two separate entities, each catering to a distinct business segment.
10. Apportionment of acquisition cost
To help shareholders understand the impact on their investment, ITC shared an example in the regulatory filing. According to it, if a shareholder bought 1,000 ITC shares at Rs 400 per share, the total acquisition cost would be Rs 4,00,000.After the demerger, 86.49% (Rs 3,45,960) of this cost would be attributed to ITC shares, and 13.51% (Rs 54,040) to ITC Hotels shares.
Further in an exchange filing later today (January 29), it added “Reference to our letter dated 27th January, 2025 on the captioned subject, kindly note that in the illustration under Point no. 3 of the communication, the total cost of acquisition of 100 shares of ITCHL should read as Rs 54,040/-, instead of Rs 50,040/-“
About ITC Hotels
ITC Hotels, established in 1975, is among India’s well-known hospitality brands. It operates over 140 hotels across more than 90 locations in the country.