ITC Hotels Debuts at Stock Exchanges; Lists at a Discount of 31% on NSE at ₹180

Newly demerged entity ITC Hotels made its debut on the bourses on January 29. In an IPO-less listing, shares of ITC Hotels opened at a discovery price of ₹180 apiece on the NSE with a discount of 31% from its predicted price of ₹260 per share.

On the BSE, the shares were listed at a price of ₹188 apiece, implying a discount of 20% from its implied price of ₹270 per share. The market cap of the ITC stood at ₹37,461 crore.

Previously, ITC decided to demerge its hotels business into a separate entity. The business conglomerate decided to come up with a demerger ratio of 1:10, meaning that for every 10 shares held of ITC, as on January 6, 2025, shareholders will receive one share of ITC Hotels post the demerger.

Under the stated conditions, about 60% of the stake in ITC Hotels will be held by the existing shareholders of ITC, while the remaining 40% will continue to remain with ITC.

Via a price discovery method, NSE and BSE conducted a special trading session for ITC shares on January 6. This was done to determine the value of ITC, post the demerger of its hotel business. The share price of ITC with the value of hotels business was discovered at ₹455 apiece, down ₹27 from previous day’s closing price.

Notably, the listing price of ITC Hotels is way above Nuvama’s estimate. The brokerage predicted a listing price between ₹150-175 per share. It also beat Sharekan’s estimate between ₹150-170 per share. However, the listing price stood lower than Noumura estimate between ₹200–300 per share.