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ITC Hotels Listing Date: ITC Hotels is set to make a stock market debut as a standalone entity on the BSE and NSE on Wednesday, January 29.
ITC Hotels Listing Date.
ITC Hotels Listing Date: ITC Hotels is set to make a stock market debut as a standalone entity on the BSE and NSE on Wednesday, January 29. Following its demerger from ITC, ITC Hotels completed all the required steps, including share allotment and price discovery.
“Further to our letter dated 11th January, 2025, we write to advise that ITC Hotels Limited (ITCHL) has informed us today that ITCHL has received approval from the National Stock Exchange of India Limited and BSE Limited for listing and trading of its equity shares effective 29th January, 2025,” according to a regulatory filing.
What Price Range Can Investors Expect for ITC Hotels?
The ITC Hotels share price was determined during a special pre-open trading session on January 6, 2025, which coincided with the record and ex-date. In this session, ITC’s share price on the NSE was adjusted by Rs 26 to Rs 455.60, while on the BSE, it adjusted by Rs 27 to Rs 455.
Brokerages have varying expectations for ITC Hotels’ listing price. Nomura forecasts a price range of Rs 200 to Rs 300, Nuvama estimates it between Rs 150 to Rs 175, and SBI Securities predicts a band of Rs 113 to Rs 170.
How Were Shares Allotted to ITC Shareholders?
Eligible ITC shareholders have already received their ITC Hotels shares in their demat accounts, but these shares are currently marked as “dummy tickets” and remain frozen until the official listing date. The allotment ratio was 1:10, meaning shareholders received one ITC Hotels share for every ten ITC shares held as of January 6, 2025.
Nuvama’s Take on ITC – Short-term Challenges or Long-term Positives?
After the ITC hotel demerger, ITC’s share price saw a correction. Nuvama estimates the market capitalization of ITC Hotels at Rs 420 billion, suggesting a listing price of around Rs 200 per share.
Given that ITC retains a 40% stake in ITC Hotels, Nuvama has revised its target price for ITC to Rs 571, down from Rs 585.
ITC: Q3FY25 Expectations
For Q3 FY25, Nuvama forecasts ITC’s revenue and EBITDA to grow by 8% and 1% YoY, respectively. However, the FMCG business remains a drag, with profits expected to decline by 10% YoY, despite modest sales growth of 3%.
Positives include a recovery in the Agri business, strong dividend yield, and attractive valuations. Despite near-term caution due to FMCG challenges, analysts continue to maintain a ‘BUY’ rating on ITC, citing its robust Agri business recovery, attractive valuations, and consistent dividend yield.
Impact of ITC Hotels Demerger on ITC
The ITC Hotels demerger took effect on January 1, 2025. As a result, ITC Hotels now operates as a separate entity focused solely on the hospitality business. ITC retains a 40% stake in the new company, with the remaining 60% distributed to ITC shareholders.
Since the demerger, ITC’s share price has been adjusted, and its market capitalization realigned. In FY24, ITC Hotels contributed 4.3% to ITC’s overall sales, with an EBIT contribution of 3.1% and an EBITDA margin of 34%.
ITC Hotels and Index Inclusion
Post-demerger, ITC Hotels will temporarily be included as the 51st constituent of the Nifty50 and the 31st constituent of the Sensex. After the listing, ITC Hotels will remain part of these indices for three trading days before being excluded, with the timeline extended if circuit limits are triggered.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
