ITC shares in focus as ITC Hotels set to list on stock exchanges tomorrow

ITC shares will remain in focus on Tuesday as the Kolkata-based diversified conglomerate announced on Monday that ITC Hotels, recently demerged from the parent company, will be listed on the stock exchanges on January 29.

"ITCHL has received approval from the National Stock Exchange of India Limited and BSE Limited for listing and trading of its equity shares effective January 29, 2025," ITC said in a regulatory filing.

ITC Hotels, demerged from ITC effective January 6, 2025, has been a placeholder entity in indices with a static price of around Rs 260.


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On January 11, ITC allotted 125.11 crore equity shares of ITC Hotels to its shareholders.

ITC Hotels ceased to be a subsidiary of ITC effective January 11.

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The share allotment is part of the restructuring under Sections 230 to 232 of the Companies Act, 2013, focusing on the demerger and reorganization of the two companies. ITC Hotels plans to apply for listing of the newly allotted shares, which will remain frozen until the necessary permissions for trading are granted by the stock exchanges.

As part of the demerger deal, ITC will retain 40% of the hotel shareholding, with the remaining 60% equally distributed among existing ITC shareholders.

The announcement of ITC Hotels’ listing date comes ahead of the market’s expectations of a mid-February listing.

ITC said the demerger will help the hotels business attract appropriate investors and strategic partners/collaborations whose investment strategies and risk profiles are more closely aligned with the hospitality industry.

Additionally, it will unlock the value of the hotels business for the company’s shareholders by providing them with a direct stake in the new entity and an independent, market-driven valuation. This move also reinforces the company’s capital allocation strategy, which has focused on an ‘asset-right’ approach in the hotels business.

The demerger positions ITC Hotels to become India’s second-largest hotel chain, with a portfolio of 140 hotels.

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