ITC Hotels To List On BSE And NSE: What Shareholders Need To Know

ITC Hotels is all set to make its stock market debut today, January 29, 2025, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This follows its demerger from the parent company, ITC Limited, earlier this month. The excitement around ITC Hotels’ listing is palpable, and there are several key points shareholders should be aware of.

Expected Listing Price

While there’s no clear confirmation on the exact listing price, the buzz suggests that ITC Hotels’ shares may hit the market in a price range between ₹113 to ₹170 each. Some brokerages, however, believe the price could go higher. Nuvama expects it to hover around ₹200, while Nomura has a more optimistic view, anticipating a price between ₹200 and ₹300 per share. On the other hand, SBI Securities has stuck to the ₹113 to ₹170 range, as reported by the Financial Express.

Listing Time

The stock will start trading today, with the markets opening at 9:15 AM. If you’re a shareholder, don’t forget to tune in as ITC Hotels begins its journey as an independent entity in the stock market.

Inclusion in Sensex and Nifty

ITC Hotels will be included in the Nifty and Sensex indices for the first three trading days. This inclusion is subject to change if the stock hits its circuit limits. After three days, however, it will be removed from both indices.

The Big Change: ITC Hotels Becomes Independent

The company officially completed its demerger from ITC Limited on January 1, 2025. ITC Hotels is now operating as a standalone entity. ITC still holds a 40% stake in the new company, while the remaining 60% has been distributed to existing ITC shareholders. This move marks a significant shift, as it allows ITC Hotels to focus solely on its hotel business, separate from the broader ITC conglomerate.

Share Allotment Details

ITC Hotels allotted a huge number of shares to its shareholders on January 11, 2025—over 125 crore equity shares. Shareholders received one ITC Hotels share for every ten ITC shares they held as of January 6, 2025. These shares are currently marked as “dummy tickets” and will become tradeable once the listing goes live.

Impact on ITC’s Market Capitalization

With the demerger, ITC’s market capitalization has been re-aligned. Shareholders now hold stakes in two separate entities, and ITC’s focus is more concentrated on its existing businesses like FMCG, cigarettes, and packaging. ITC Hotels, on the other hand, is now free to explore new opportunities within the hospitality sector.

What About the Acquisition Cost?

When it comes to the acquisition cost, shareholders need to know how their investment is divided. For example, if someone bought 1,000 ITC shares at ₹400 each, the total cost would be ₹4,00,000. After the demerger, 86.49% of that cost (around ₹3,45,960) would be attributed to ITC shares, while 13.51% (₹54,040) would go toward the ITC Hotels shares.

Price Adjustments: Pre-Open Trading Session

Before today’s listing, a special pre-open session held on January 6 helped establish adjusted prices for ITC shares. On the NSE, the share price was reduced by ₹26 to ₹455.60, while on the BSE, it was cut by ₹27, bringing the adjusted price to ₹455.

What Does This Mean for Shareholders?

For those holding shares of ITC, the demerger is a significant event. They’ve now become part-owners of ITC Hotels, and as the hotel chain makes its debut on the stock market, it could open doors for new growth and opportunities. If the stock price rises after listing, it could be a solid win for investors.

So, whether you’re excited or just keeping an eye on the market, ITC Hotels’ debut today promises to be an exciting start to 2025 for investors in the hospitality sector.