ITC Hotels shares set to be listed for trading on bourses on January 29

Shares of ITC Hotels are set to be listed for trading on the BSE and the National Stock Exchange (NSE) on January 29.

“…we write to advise that ITC Hotels (ITCHL) has informed us today that ITCHL has received approval from the National Stock Exchange of India Ltd and BSE Ltd for listing and trading of its equity shares effective January 29, 2025,” ITC Ltd informed bourses in a stock exchange filing on Monday.

Notably, the Kolkata-headquartered conglomerate fixed the effective date for demerger of its Hotels business on January 1, 2025. The record date was fixed as January 6 for purposes of determining the shareholders of ITC Ltd to whom equity shares of ITC Hotels would be allotted pursuant to the demerger.

The board of directors of ITC Hotels at its meeting on January 11 allotted around 125.12 crore equity shares of Re 1 each to the shareholders of ITC Ltd as on the record date, pursuant to the scheme of arrangement amongst ITC Ltd and ITC HL and their respective shareholders and creditors.

As per the share entitlement ratio of 10:1, shareholders holding 10 shares of ITC Ltd, received one share of ITC Hotels post the demerger as on the record date.

The Kolkata bench of the National Company Law Tribunal (NCLT) on October 4, 2024, sanctioned the scheme of arrangement amongst ITC Ltd and ITC Hotels Ltd.

As per the SEBI rule, shares of ITC Hotels are to be listed within 60 days from date of receipt of NCLT Order (i.e. December 16, 2024).

Focus on growth

“We are expecting the listing to be on or before February 2025, and based on the peer valuation expectation in the luxury hotel space, we are expecting the listing to be anywhere in the range of ₹100-125 per share on conservative basis. ITC Hotels’ demerger is expected to unlock substantial shareholder value and enable the newly-formed company to focus on growth in the luxury hospitality sector,” Prashanth Tapse, Senior VP (Research), Mehta Equities, said in a note on January 6.

The diversified conglomerate will be holding a stake of about 40 per cent in the new entity — ITC Hotels — and the balance shareholding of about 60 per cent to be held directly by the conglomerate’s shareholders proportionate to their shareholding in it.

“We note the proposed reorganisation would ensure continued interest of ITC in the hospitality business with sharper focus and optimal cost structure banking on its brand equity and goodwill. ITC holds 140 properties with ~13000+ keys (45 per cent owned) across 90+ locations under 6 brands in luxury, premium and budget segments and management has aims to reach 200+ hotels and 18,000+ keys (35 per cent owned) by CY30. We expect 13.8 per cent revenue CAGR over FY24-27E with an EBITDA margin of ~35 per cent led by strong growth in domestic demand for the hospitality sector,” Centrum Broking said in a note on January 1.

On Monday, ITC Ltd scrip ended the day at ₹440 apiece, down 0.34 per cent from the previous close.