ITC Hotels Likely To Start Trading Before Budget 2025
While ITC has not confirmed the date of listing, a company spokesperson told NDTV Profit that it will take place within a couple of weeks, following the issuance of pending approvals.
ITC Hotels Ltd., the hotel arm of ITC Ltd., will list before the budget day, according to people aware of the development.
ITC Hotels was demerged as a separate entity with effect from Jan. 1, 2025, and is supposed to list within 60 days. The record and ex-date for the demerger was Jan. 6, 2025.
On Jan. 6, through a special pre-open session, the hotel assets of ITC were demerged from the cigarette major. The demerged portion was valued at Rs 26 per share and continues to remain dormant along with ITC on nearly 60 indices including the benchmark NSE Nifty 50 and BSE Sensex 30.
The Listing Date
"ITC Hotels is tentatively scheduled to be listed and begin trading on the NSE and BSE from Jan. 29, 2025, provided it receives all requisite approvals from the Securities and Exchange Board of India and stock exchanges under the various regulation under SEBI's (Listing Obligations and Disclosure Requirements) Regulations, 2015," according to the persons privy to the development.
While the company did not confirm the date of listing, an ITC spokesperson told NDTV Profit that the listing will take place within a couple of weeks, following the issuance of pending approvals.
The listing of ITC Hotels will ensure the shares of the hotel arm remain in key global MSCI and FTSE Global Indices. As per the regulations, ITC is required to inform the listing date within 20 working days from the date of demerger.
ITC announced on Jan. 11 that it has allotted shares of ITC Hotels, amounting to 125.11 crore equity shares, to its shareholders as part of the demerger process. The allotment was confirmed at a board meeting held on Jan. 11, following a scheme of arrangement between ITC and ITC Hotels.
Following the allotment, ITC Hotels ceased to be a subsidiary of the parent firm ITC, with the change coming into effect on Jan. 11.
As part of the process, ITC Hotels also stated that it will initiate necessary applications to list the newly allotted shares. However, these shares will remain frozen until the listing and trading permissions are granted by the stock exchanges.
ITC Hotels Trading
ITC Hotels is currently in the indices at a constant price — which is the difference between ITC's closing price the day before the demerger came into effect and the ex-hotel price arrived on Jan. 6 during the special pre-opening session.
Once the shares of ITC Hotels are credited to the shareholders and permitted to trade by the exchanges, then they could only be removed from the indices after the end of the third day of trading. This is in accordance with the exchange regulations for companies listing through scheme of arrangement and index reconstitution rules.
In case the share price of ITC Hotels hits the circuit on first two days, then exclusion will be deferred by another three days.
After two consecutive days of ITC Hotels' share price not hitting the price band, it will be removed from the indices after the third day of trading even if it hits the price band on the last day.
Notably, ITC's demerger exercise was part of the strategy to separate its hotels business, with ITC Hotels poised to become India's second-largest hotel chain with a portfolio of 140 hotels and 12,965 keys.
ITC, a diversified conglomerate, has a strong presence across various sectors, including FMCG, hospitality, paperboards, and packaging. Known for brands like Aashirvaad, Sunfeast, and Classmate, the company has been a key player in India's consumer goods market.
ITC Hotels, the hospitality arm of ITC, has a portfolio of luxury properties across major cities and tourist destinations. The company operates several iconic brands, including ITC Grand Bharat and WelcomHotel, known for their premium offerings in the hospitality sector.
