If there is one rate that everyone is looking forward to this morning, it is the share price of ITC Hotels when it lists on the exchanges in a few hours from now. ITC had demerged its hotel business in early January and since then there are many numbers that are doing the rounds. However, the consensus seems to be that the share price range should be between Rs 120 and 175. There are of course a few who are suggesting a Rs 200 plus number while some see the prospect of a share price below Rs 100 a share too while it makes a debut at the exchanges.
ITC Hotels listing price- What does peer comparison indicate?
ITC Hotels currently operates a fairly comprehensive portfolio comprising 140 properties and 6 distinct brands. These include ITC Hotels, Mementos, WelcomHotel, Storii, Fortune and WelcomHeritage. In FY24, it had an occupancy rate of 69% and plans to add 5,000 additional rooms by 2030.
ITC Hotel’s strong expansion strategy and favourable trends within the hospitality sector are seen as key positives for the ITC Hotel share price. Deven Choksey, Managing Director of DRChoksey FinServ highlighted that the company’s comparable peers, “Indian Hotels and EIH are currently trading at an FY26E EV/EBITDA multiple of 31x and 21.2x.”
He anticipates ITC Hotel’s “listing to occur at an EV/EBITDA multiple of 20x-25x implying a market capitalization range of Rs 29,162.9 – 36,453.7 crore. This would result in a potential listing price in the range of Rs 140-175 per share.”
ITC Hotels listing today- What are brokerages suggesting?
Leading brokerage house Nomura projects the listing price between Rs 200-300 per share on the anticipation that the market capitalisation of ITC Hotels may range between Rs 42,500 – 60,000 crore.
Another brokerage house Nuvama sees the ITC Hotels shares listing around Rs 200 per share mark. This is based on the revised market cap assumption by Nuvama in light of the correction in ITC share price. Nuvama expects the market cap of the “Hotel business to be around Rs 42,000 crore.” Assigning a holdco discount to the hotel business of 20% to ITC’s Hotel business,” they see the listing price around Rs 200 a share.
SBI Securities suggested a price band of Rs 113-170 per share.
ITC Hotels listing today – Will there be selling pressure on debut
Some market observers, however, believe that the ITC Hotels counter may see some selling pressure on listing day. They believe that many existing shareholders of ITC who are not keen on exposure in the hospitality sector may look to exit the stock early on. Market veteran Deepak Jasani explained, “Going by current sentiment, ITC Hotels may open a bit depressed. Buying can be expected by those interested in taking exposure to the hotel segment. It may list well but see some selling pressure. Buying in the counter may be seen after a few days. However, I do not expect much fireworks. ITC Hotels will be a mature large-cap stock. Once the Q3 results are announced, one can expect investors to take a firm view. This is because, after the analyst concall, investors will get greater clarity on the business dynamics of ITC Hotels.”
Kishor Ostwal, Chief Managing Director at CNI Research too expects some selling pressure initially, “There might be some selling pressure on ITC Hotels on listing day but eventually it could see buying. The hotel business is a good space to invest in. I expect the listing price to be below Rs 100 per share.”
ITC Hotels listing time
For now, all eyes will be glued to the trading terminals at NSE, BSE and investors are waiting with bated breath for the much-anticipated debut. Watch the space for all the listing action in a few hours from now.