MUMBAI: ITC Hotels (ITCHL) shares on Wednesday were listed at Rs 188 apiece on the BSE, and at Rs 180 apiece on NSE. The stock was listed over 30% discount to the discovered price and it fell sharply during the debut session and closed at 5% lower circuit on the BSE.
At the time of listing, ITC Hotels commanded a market capitalisation of Rs 39,000 crore which came down to Rs 37,000 crore at close. The share’s listing price was significantly lower than what the Street had given earlier during a special price-discovery session this month. During the session, the stock was assigned a value of around Rs 260 on the NSE and about Rs 270 on the BSE.
Based on the discovered price, ITC Hotels' market capitalisation stood at about Rs 54,000–56,000 crore.
“Debuting with a zero-debt balance sheet and a cash/cash equivalents of Rs 1,500 crore to cater to planned growth and contingency requirements, ITCHL is now listed for trading on the stock exchanges,” said the company in a statement.
ITC Hotels currently operates over 140 properties with over 13,000 keys in over 90 locations. It plans to expand its portfolio to over 200 hotels with over 18,000 keys over the next 5 years.
Sanjiv Puri, Chairman, ITC Hotels Ltd. said, “As ITC Hotels embarks on this new journey, it is committed to achieving new global benchmarks in hospitality while staying rooted in its vision of sustainability and inclusivity. The future indeed promises exciting opportunities to expand, innovate, and redefine luxury experiences.”
The demerger of ITC's hotel business is part of the company's broader strategy to unlock shareholder value as it would allow the different verticals to operate independently.
There is also no change in the shareholding pattern of ITC hotels. The shareholders of ITC now directly hold about 60% of the new company, proportionate to their shareholding in ITC; the balance stake of about 40% is held by ITC. Shareholders of ITC received one share for every 10 shares they held in the company.
The demerged entity also reported that its net profit in the December quarter (Q3FY25) came in at Rs 74.35 lakh, an increase from Rs 41.68 lakh reported in the same period last fiscal. The company’s total income stood at Rs 163.92 lakh in Q3FY25, versus Rs 160.27 lakh in the year-ago period.