The shares of ITC will certainly be in the limelight on Tuesday as the Kolkata-based diversified conglomerate on Monday said that the recently demerged ITC Hotels will be listed on the stock exchanges on January 29.
It said ITCHL has obtained requisite listing and trading permission from the National Stock Exchange of India Limited and BSE Limited for its equity shares on and from January 29, 2025.
ITC Hotels, which was demerged from ITC with effect from January 6, 2025, has been a scrip symbol in indices with a fixed price of around Rs 260. On January 11, ITC divested 125.11 crore equity shares of ITC Hotels to its shareholders.
ITC Hotels is no longer a subsidiary of ITC from January 11.
The share allotment is part of restructuring in terms of sections 230 – 232 of the Companies Act of 2013, which covers the demerger and restructuring of the two companies.
In the case of ITC Hotels, it has been proposed that fresh shares be issued for the expansion of the hotel business, and the shares so allotted are to stay locked in for the period when the necessary approvals for trading the shares have not been received from the BSE or any other stock exchange.
Pursuant to the demerger plan, ITC will own 40 percent of the hotel business, while the remaining 60 percent will be divided equally among the existing ITC shareholders.
The ITC Hotels coming-out date precedes the market anticipation of the listing happening earliest in mid-February.
According to ITC, demerging the hotel business will enable the company to attract the right investors and strategic partners/collaborations whose fund investment methodologies and risk management are consistent with the hospitality industry.
Also, it will help to release the value of the hotel’s business for the company’s shareholders because they get a direct interest in the new structure and its independent market value. It also supports the company’s capital allocation framework, which has adopted asset rights in the hotel business line.
Market Sentiment And Investor Interest
The upcoming listing has generated significant buzz among investors and analysts alike. Many are keen to see how ITC Hotels performs as a standalone entity, especially given its established reputation in India’s hospitality sector.
The company operates over 140 hotels with nearly 13,000 rooms, and it has ambitious plans to expand its portfolio to over 200 hotels by 2030. This growth trajectory positions ITC Hotels favorably within a recovering tourism industry post-pandemic.