ITC Hotels Shares List At Rs 188 On BSE, Rs 180 On NSE; Stock Drops 5% Post-Listing

The demerger of ITC’s hotel business took place on January 1, 2025, with January 6 serving as the record date. This corporate restructuring separated ITC Hotels from its parent company, ITC Ltd.

Before the official listing, a special trading session was conducted by the BSE and NSE on January 6 to determine the price of the ITC Hotels business post-demerger

Source : ITC

Shares of ITC Hotels Ltd, the newly demerged hotel business of FMCG conglomerate ITC Ltd, made their debut on the stock exchanges on Wednesday. The stock opened at Rs 188 on the Bombay Stock Exchange (BSE) and at Rs 180 on the National Stock Exchange (NSE).

However, the stock saw a decline shortly after listing, falling by 5 per cent to Rs 178.60 on the BSE, and by 3 per cent to Rs 172 on the NSE. Despite this early dip, the company’s market valuation stood at Rs 39,126.02 crore following the listing.

The demerger of ITC’s hotel business took effect on January 1, 2025, with January 6 serving as the record date. This corporate restructuring separated ITC Hotels from its parent company, ITC Ltd. As per a circular issued by the NSE, the equity shares of ITC Hotels were officially listed and admitted for trading on the stock exchanges starting January 29, 2025.

In a separate regulatory filing, ITC confirmed that ITC Hotels had received approval from both the National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange Ltd (BSE) for listing and trading of its equity shares, which became effective on January 29, 2025.

Before the official listing, a special trading session was conducted by the BSE and NSE on January 6 to determine the price of the ITC Hotels business post-demerger.

ITC Hotels Room Price

Meanwhile, ITC Hotels' Average Room Rate (ARR) has risen from Rs 7,900 in FY19 to Rs 12,000, marking a 51.9 per cent increase (with a compound annual growth rate of 8.7 per cent). Similarly, Revenue Per Available Room (RevPAR) grew from Rs 5,200 in FY19 to Rs 8,200 in FY24, reflecting a 57.7 per cent rise (CAGR of 9.5 per cent), according to The Economic Times report.

In FY24, the revenue composition was split as follows: 52 per cent came from room sales, 40 per cent from food and beverage services, and the remaining 8 per cent from other revenue streams, states the report.

Additionally, SBI Securities noted that any short-term pressure on ITC Hotels Ltd’s stock price could present a valuable opportunity for retail and high-net-worth individual (HNI) investors to acquire shares of a quality business for their long-term portfolios.