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PremiumITC Hotels Demerger Live Updates: ITC shares traded ex-hotels today as the ITC Hotels demerger record date was today. The stock exchanges, BSE and NSE held a special trading session to discover the fair price of ITC Hotels stock. At the end of this special session, ITC share price was adjusted by ₹26 or 5.4% at ₹455.60 on NSE and by ₹27 or 5.6% at ₹455 on BSE. The Street expected ₹15-20 per share adjustment for the hotel business. ITC Hotels share price will be calculated based on the difference between the closing prices of ITC shares on January 3, 2025, and the open price of ITC discovered during the SPOS (special pre-open session) on January 6, 2025. ITC Hotels demerger ratio is 1:10, i.e. shareholders will get one share of ITC Hotels for every 10 ITC shares held. ITC Hotels share listing will be done separately and the listing date is yet to be announced. Stay tuned to our ITC Hotels Demerger Live Blog for the latest updates.
ITC share price closed the session at ₹442.50, 2.75% lower on the BSE. Meanwhile, on NSE, the stock settled at ₹445.35, down 2.25%. ITC shares traded ex-demerger in today's trade, which means the value of ITC shares are now ex-hotels business.
ITC Hotels is India's second-largest hospitality entity, boasting 140 properties compared to peers such as Indian Hotels (232), EIH (23), and Lemon Tree (112). Based on proforma financials, ITC Hotels' valuation is pegged at ₹150 per share, applying a 25x EV/EBITDA multiple on FY26E.
Systematix maintained a Hold rating on ITC with a target price of ₹500 (10% upside), noting that detailed company disclosures post-demerger will refine their estimates. ITC shares are trading at P/E multiples of 26x and 23x for FY26E and FY27E EPS, respectively.
ITC Share Price Live: ITC’s cigarette business is expected to continue strong volume growth, supported by its dominant market position and pricing power. Additionally, the company is focused on improving margins in its non-cigarette FMCG segment, which should drive overall profitability in the near term. Post-demerger, ITC will focus on its core cigarette and FMCG businesses, benefiting from a more asset-light structure, improving capital efficiency and returns. This shift is expected to improve ITC’s return ratios substantially. ITC’s focus on improving profitability offers an attractive long-term upside, said Akriti Mehrotra, Research Analyst, StoxBox.
ITC Share Price Live: Analysts at brokerage firm B&K Securities highlighted ITC Hotels’ strategic focus on an asset-light, managed-hotel model, which is expected to enhance Return on Capital Employed (RoCE). They have projected ITC Hotels' fair listing value at ₹145, based on a 25x EV/EBITDA multiple on FY26E EBITDA. However, potential supply pressures are anticipated due to British American Tobacco's (BAT) exit. With ITC stock currently trading at a P/E of 23.8x on FY27E EPS, B&K has maintained a Buy rating on ITC with an unchanged target price of ₹588, assigning a P/E of 29x on FY27E EPS of ₹20.4.
ITC Share Price Live: Alongside the demerger announcement, ITC also disclosed acquisitions in the hospitality sector. Through its wholly-owned arm, Russell Credit, ITC acquired a 2.44 per cent stake in EIH (Oberoi Hotels) and a 0.53 per cent stake in HLV Ltd (The Leela). Following these acquisitions, ITC now holds 16.13 per cent of EIH and 8.11 per cent of HLV, further solidifying its presence in the luxury hotel industry.
ITC Share Price Live: ITC share price was trading 2.65% lower at ₹442.95 apiece on the BSE. The stock was trading ex-Hotels business.
ITC Share Price Live: ITC Hotels is one of the largest hotel companies with 140 hotels and ~13,000 operating keys as of October 2024. The company targets to grow its portfolio to 200+ hotels and 18,000+ keys by 2030. Around 35% of the hotel portfolio is owned by ITC Hotels and the balance is managed (including franchise model). The ARR and RevPAR of its owned hotels has grown 20% and 18% YoY respectively in FY24 with occupancy level of 69%. The return ratios are healthy with RoCE of ~20%. It has a net cash surplus with negligible debt on books, thus providing healthy growth opportunity going ahead.
ITC Share Price Live: Most awaited ITC demerger gets price discovery at ₹455.60 and ₹27 adjusted towards ITC Hotel based on previous closing during the Special Pre-Open Session. The discovery price of ITC Hotel was in line with our expectations. Now ITC shareholders get 1 share of ITC Hotels for every 10 held of ITC. As per the index demerger listing rules ITC Hotels will be part of index and will be excluded from indices 3 business days after its listing date (if there are no circuit breakers). 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 shares on conservative basis, said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
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. Post demerger we continue to remain optimistic on the stocks and the demerger entity (ITC HOTEL). Hence, we recommend investors to hold and enjoy the unlocking shareholders value, Tapse added.
ITC Share Price Live: ITC Hotels is expected to meet the criteria for inclusion in the MSCI Global Small Cap Indexes, based on Nuvama estimates. As a result, ITC Ltd. will remain part of the Standard Index. However, following the listing of ITC Hotels, the hotel business will be moved to the Small Cap Index and will no longer be part of the Standard Index.
MSCI intends to apply a Price Adjustment Factor (PAF) to the market price of ITC on January 06, 2025 to reflect the spin-off. The PAF formula will be as follows: [P(t-1)] / [P(t)]. Since ITC HOTELS is not expected to start trading on the ex-date, MSCI intends to temporarily add a detached security ITC (DET) to the MSCI Global Standard Indexes as of close of January 06, 2025 (effective January 07, 2025). The price of ITC (DET) will be calculated by taking the difference between the closing price of ITC on January 03 and January 06. MSCI intends to maintain ITC (DET) at this price until ITC HOTELS begins trading. When ITC HOTELS starts trading, MSCI intends to apply a PAF to the market price of ITC (DET) based on terms of spin-off. Thereafter, MSCI intends to delete ITC (DET) from the MSCI Global Standard Indexes as of the close of the first trading day of ITC HOTELS using the closing market price of ITC HOTELS. Simultaneously, MSCI intends to add ITC HOTELS to the MSCI Global Small Cap Indexes as of the close of its first trading day, Nuvama explained.
ITC Share Price Live: As per the current methodology, ITC Hotels stock needs to have at least a six month trading history to even qualify for derivative inclusion. Hence, ITC Hotels inclusion in the Futures & Options (F&O) segment is unlikely. After fulfilling all the quantitative qualification criteria for the derivative inclusion, ITC Hotels shares will need SEBI approval, which is quite subjective, said brokerage firm Nuvama.
ITC Share Price Live: Centrum Broking expects in FY27E, ITC hotel business revenues to reach at ₹45.7 billion with an EBITDA margin of ~35% led by strong growth in domestic demand for the hospitality sector. Overall, it has a positive outlook on ITC Hotels demerger and retains a ‘Buy’ call on ITC shares with a target price of ₹583 apiece.
ITC Share Price Live: ITC Hotels is one of the largest hotel companies with 140 hotels and ~13,000 operating keys as of October 2024. The company targets to grow its portfolio to 200+ hotels and 18,000+ keys by 2030. Around 35% of the hotel portfolio is owned by ITC Hotels and the balance is managed (including franchise model). The ARR and RevPAR of its owned hotels has grown 20%/18% YoY respectively in FY24 with occupancy level of 69%. The return ratios are healthy with RoCE of ~20%. It has a net cash surplus with negligible debt on books.
ITC Share Price Live: In the short term, there is a possibility that few shareholders (especially ETFs) may have to forcefully exit ITC Hotels Ltd and this can create pressure on the stock price. We believe, any short term pressure on the ITC Hotels stock price will be a good opportunity for retail/HNI shareholders to accumulate quality business in their long term portfolio. Meanwhile, post demerger, investors can also continue to hold shares of ITC Ltd for long term given its diversified FMCG portfolio and steady growth in its core businesses (Cigarette & FMCG). Also, the demerger of its asset heavy hotels business will result in improved return ratios and cash flows. We believe, post demerger, ITC Ltd’s medium term fair value to be ₹525-550, said SBI Securities.
ITC Share Price Live: For ITC Ltd shareholders, post demerger and listing of the ITC Hotels Ltd, there will be no material value addition as the price of ITC Ltd will get adjusted taking into account the holding company discount as shown above. Post listing of the ITC Hotels Ltd, investors will get an opportunity to participate directly in the growth story of ITC’s hotel business. Looking at the robust key addition pipeline for ITC Hotels and strong industry tailwinds, we believe ITC Hotels Ltd has potential to outperform ITC Ltd over a medium to long term period, said SBI Securities.
ITC Share Price Live: ITC share price adjusted ₹27 lower after trading ex-date for hotels demerger session. ITC share price is currently around ₹455 apiece on the NSE and it has made a strong base at ₹430, which is expected to remain sacrosanct. ITC shareholders are advised to remain invested and add more in ₹430 to ₹450 zone, maintaining a strict stop loss of ₹100 below, said Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi.
According to him, fresh investors can also buy on dips in the ₹450 to ₹430 zone, maintaining a stop loss at ₹400. ITC stock may soon touch ₹480 and can touch ₹520 on breaking above ₹480 on a closing basis.
ITC Share Price Live: ITC shares are now trading ex-demerger, which means the value of ITC shares are now ex-hotels business. At the end of a special trading session for the price discovery of ITC Hotels on stock exchanges BSE and NSE, the market has assigned ITC share price of ₹455.60.
ITC Share Price Live: The special trading session on BSE and NSE to derive ITC Hotels share price has ended. ITC share price was adjusted by ₹26 or 5.4% at ₹455.60 on NSE and by ₹27 or 5.6% at ₹455 on BSE.
ITC Share Price Live: The discovered price of ITC shares is at ₹455.60 apiece in special trading session on NSE after demerger of ITC Hotels.
ITC Share Price Live: According to Nuvama, ITC share price is expected to be adjusted by ₹22-25 on January 6, reflecting its 40% stake in the hotel business and incorporating a 20% holding discount. Abhilash Pagaria of Nuvama anticipates that the initial market price for ITC Hotels shares could range between ₹150-175 per share.
ITC Share Price Live: The average EV/EBITDA multiple of ITC Hotels’ industry peers, i.e. Indian Hotels and EIH Ltd, is 25.0x. Assuming that ITC Hotels will list at an EV/EBITDA multiple of 20.0x - 30.0x, the share price of ITC Hotels Ltd is expected to list in the range of ₹113 to ₹170 per share, according to the calculations done by SBI Securities.
ITC Share Price Live: ITC Hotels will issue equity shares directly to the shareholders of ITC in a manner that about 60% stake is held directly by ITC shareholders proportionate to their shareholding in ITC and remaining about 40% stake to continue with ITC. Overall, existing ITC shareholders will hold 100% of ITC Hotels, i.e. about 60% directly and balance of about 40% through their shareholding in ITC.
ITC Share Price Live:ITC Hotels will be 51st constituent in Nifty 50 and 31st constituent in Sensex and daily will be considered in weight calculations of Index. However as it is not traded live so its market-cap and price will remain constant until it lists. Post its listing for three trading days, live market-cap will be considered to calculate weight in all the indices, said brokerage firm Nuvama.
ITC Share Price Live:ITC Hotels shares will be maintained in all the NSE and BSE indices at a constant price i.e., the discovered price during the special pre-open session on January 6. However, ITC Hotels stock will be dropped from all the NSE and BSE indices at the last traded price which is effective at the open of ITC Hotels listing date + 3 business days.
If the stock hits circuit limits, the exclusion will be postponed by two trading days each time. For instance: if ITC Hotels lists on February 10, 2025 then stock will compulsorily be deleted on February 13, 2025.
ITC Share Price Live: BSE and NSE are conducting a special pre-open session from 9.00 am to 9.45 am to discover ITC Hotels stock price. Normal trading in ITC shares will resume at 10.00 am onwards. ITC Hotels share price will be calculated based on the difference between the closing prices of ITC shares on January 3, 2025, and the open price of ITC discovered during the SPOS (special pre-open session) on January 6, 2025.
ITC Hotels demerger record date is today, January 6, and ITC shares will trade ex-demerger today. The Indian stock exchanges, BSE and NSE, are holding a special trading session to derive the ITC Hotels share price.
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