ITC Hotels lists at ₹180, 31% below implied price
What's the story
ITC Hotels made its debut on the National Stock Exchange (NSE) today, with shares listing at a discovery price of ₹180 each. The IPO-less listing comes at a nearly 31% discount from the implied price of ₹260 per share. The listing comes after the company's separation from its parent firm, ITC. On BSE, the shares were listed at ₹188 per share. The stock has a market cap of over ₹37,460 crore.
Corporate restructuring
Demerger strategy and share distribution
The demerger of ITC Hotels from ITC was a strategy to unlock shareholder value. The demerger ratio was fixed at 1:10, meaning for every 10 shares of ITC held as on January 6, 2025, shareholders would get one share of ITC Hotels. After this scheme, about 60% of the new entity's stake is now held by former ITC shareholders in proportion to their holdings in the parent company.
Company profile
ITC Hotels: A legacy of luxury and growth
Established in 1975, ITC Hotels is India's leading chain of luxury hotels with over 140 properties in over 90 locations. As part of the demerger scheme, investments in several hospitality entities will be transferred to ITC Hotels. These include Bay Islands Hotels Ltd., Fortune Park Hotels Ltd., Landbase India Ltd., Srinivasa Resorts Ltd., WelcomHotels Lanka Pvt. Ltd., Gujarat Hotels Ltd., International Travel House Ltd. and Maharaja Heritage Resorts Ltd.