ITC Hotels shares slip on debut; Puri sees bright growth prospects
Following the demerger of ITC Hotels from diversified conglomerate ITC Ltd, shares of the hospitality company were listed at ₹180 apiece on the National Stock Exchange (NSE) on Wednesday, while on BSE, shares were listed at ₹188 per share.
After debuting, the shares fell on both bourses. The stock dropped by 4.81 per cent from the listing price to ₹171.35 on NSE as of 14:36 p.m. On BSE, shares fell 5 per cent to ₹178.60 apiece.
Notably, the Kolkata-headquartered ITC Ltd fixed the effective date for the demerger of its Hotels business on January 1, 2025. The record date was fixed as January 6 to determine the shareholders of ITC Ltd to whom equity shares of ITC Hotels would be allotted pursuant to the demerger.
Share entitlement ratio
As per the share entitlement ratio of 10:1, shareholders holding 10 shares of ITC Ltd received one share of ITC Hotels post- demerger as on the record date.
ITC Ltd has retained a 40 per cent stake in ITC Hotels, while the remaining 60 per cent is distributed among existing shareholders.
Landmark moment
Speaking at the listing programme at NSE, Sanjiv Puri, Chairman, ITC Hotels, said, “Today is indeed a landmark moment in ITC’s journey. Listing of ITC Hotels marks not just a new chapter for the ITC Group’s hospitality business, but a bold step forward in our commitment to creating enduring value for all stakeholders.”
Puri said as ITC Hotels embarked on this new journey, it was committed to achieving new global benchmarks in hospitality while staying rooted in its vision of sustainability and inclusivity. “The future indeed promises exciting opportunities to expand, innovate, and redefine luxury experiences. As we do so, ITC Hotels is also committed to enriching the tourism landscape of India contributing to the nation’s goals for a Viksit Bharat,” he added.
Anil Chadha, Managing Director, ITC Hotels, said, “Today is a time in history when we want to reinforce our commitment to building one of India’s finest hospitality chains that will redefine the future of hospitality. ITC Hotels carries a history built on trust, innovation and pride. As we look ahead, ITC Hotels is ready to take bold strides as an independent, agile and pure play hospitality entity.”
The company aimed to be a global leader in Indian hospitality driven by its core ethos of customer centricity, high performance and steadfast commitment to sustainability, Chadha added.
ITC Hotels portfolio
Operating across all hospitality segments, ITC Hotels has a portfolio of hotels through six brands – including ITC Hotels and Mementos in the luxury space, Welcomhotel in upper upscale, Storii in boutique premium experiential segment, Fortune in midscale and WelcomHeritage in heritage leisure.
Currently, the company operates over 140 properties with over 13,000 keys in over 90 locations. It plans to expand its portfolio to over 200 hotels with over 18,000 keys over the next five years, with approximately two-thirds salience of managed properties.
The hospitality major launched 30 hotels within 24 months recently (as on December 31, 2024), and has a robust target of adding at least one hotel a month on average over the next 24 months.
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.
