ITC Hotels, the spun-off hospitality business of ITC Limited, debuted on the National Stock Exchange (NSE) at ₹180 on Wednesday, January 29, 2025. However, the stock slipped to ₹175.60, a decline of 2.44% from its listing price, by 11.05 am.
At the same time, ITC Limited’s shares were trading at ₹431.80, down by ₹3.65 or 0.84% on the NSE. Shareholders of ITC Limited received one share of ITC Hotels for every ten shares held in the company under the demerger scheme. The stock will be traded in the Trade-for-Trade segment for the next ten trading days.
Following the demerger, ITC’s stock price adjusted to ₹455.60, with ₹27 allocated to ITC Hotels during the Special Pre-Open Session. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, mentioned that the listing price met expectations, considering a conservative range of ₹100-125 per share. He highlighted that the demerger is expected to unlock significant shareholder value and enable the newly formed company to focus on growth in the luxury hospitality sector.
Trading data showed a buy quantity of 10,96,787 shares against a sell quantity of 20,77,705 shares, with the stock touching a low of ₹172 during early trading. ITC Hotels shares have a face value of ₹1 each.
In conclusion, the market debut of ITC Hotels highlighted the potential for growth and value creation following the demerger from ITC Limited. The initial trading reflected investor sentiment towards the new entity and its prospects in the hospitality sector.
