ITC Hotels Share Price Highlights: ITC Hotels share price ends at 5% lower circuit at ₹178.60 apiece on listing day

ITC Hotels Share Listing Highlights: ITC Hotels share price ended sharply lower on the listing day, January 29. ITC Hotels shares closed at 5% lower circuit of ₹178.60 apiece on the BSE. The stock was listed at a 31% discount at ₹188.00 earlier today.

On NSE, ITC Hotels stock price ended the debut session 3.53% lower at ₹173.65 apiece. The stock was listed at ₹180.00 apiece on the bourse.

ITC Hotels Share Listing Live: Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi has suggested a ‘buy on dips’ strategy for ITC shares. “Investors can buy ITC shares on dips, keeping a stop loss at ₹415 - 410 levels, and for a target range of ₹453 - 475. If ITC stock breaches above ₹450 level, more aggressive buying can be initiated for a target of ₹480 - 490,” Dongre said.

ITC Hotels Share Listing Live: ITC share price traded marginally lower on Wednesday after the listing of ITC Hotels shares. According to Ruchit Jain, Vice President, Equity Technical Research, Motilal Oswal Financial Services Ltd., technical charts suggest ITC shares are in a consolidation phase.

“ITC shares are trading in a range of ₹430-460 for a few weeks. There are no signs of a breakout or any upside. Hence, we believe this consolidation phase in ITC shares will continue,” Jain said.

ITC Hotels Share Listing Live: No, ITC Hotels shares will not be introduced in the derivatives segment after listing. According to the current methodology, a stock needs to have at least six months of trading history to qualify for Futures & Options (F&O) segment inclusion. After meeting all the quantitative criteria for derivative inclusion, ITC Hotels stock will also require SEBI approval, which is subjective.

ITC Hotels Share Listing Live: Stock likely to enter MSCI Global Small Cap Indexes

ITC Hotels Share Listing Live: ITC Hotels stock is expected to meet the criteria for inclusion in the MSCI Global Small Cap Indexes. Thus, the stock will migrate from Standard Index (currently dummy stock) to Small-cap Index, according to Nuvama Equities.

ITC Hotels Share Listing Live: Nifty 50 and Sensex will exclude ITC Hotels stock on T+3 day. According to Nuvama Equities, ITC Hotels shares are expected to see passive outflow of around $100 million on Nifty 50 exclusion (current weight of 23bps), and outflows of around $65 million on Sensex exclusion (current weight of 28bps). If the ITC Hotels stock hits circuit limits on the day of exclusion, then exclusion will be postponed by two trading days for each instance.

ITC Hotels Share Listing Live: DevenChoksey Research projects a revenue, EBITDA and PBT CAGR of 15.0%, 18.3% and 17.2% over FY24- FY27 for ITC Hotels, with an expected EBITDA margin of 36.0% in FY26E and FY27E. This growth is underpinned by a strong expansion strategy and favorable trends within the hospitality sector. With a debt-free balance sheet and robust cash flow generation, ITC Hotels is well-positioned to capitalize on value-accretive M&A opportunities, it said.

ITC Hotels Share Listing Live: DevenChoksey Research values ITC shares on a Sum-of-the-Parts (SOTP) basis and has revised its target price to ₹520 post the demerger of its hotel business. Previously, the hotel segment was valued at an EV/EBITDA multiple of 17.3x. Following the demerger, the brokerage firm has adjusted the target price by ₹12 per share, accounting for the 40.0% retained holding and a 20.0% holding company discount, resulting in a revision of the target price from ₹534 to ₹520.

“The demerger of ITC Ltd's hotel business unlocks value by allowing ITC to focus on its high-margin, cash-generative core segments, while the standalone hotels entity gains flexibility to capitalize on industry growth and attract strategic investors. This move enhances resource allocation, supports distinct growth trajectories for both entities, and is expected to improve valuation multiples. Accordingly, we upgrade our rating on ITC Ltd to ‘Buy’ from ‘Accumulate’, it said.

ITC Hotels Share Listing Live: ITC share price was trading marginally lower after the listing of its demerged entity ITC Hotels on Wednesday. ITC shares were down 0.14% at ₹434.65 apiece on the BSE. ITC stock opened at ₹435 against its previous close of ₹435.25 per share. It hit an intraday high of ₹437.25 apiece and a low of ₹432.10 on the BSE.

ITC Hotels Share Listing Live: After the listing, ITC Hotels shares extended the decline and were locked at 5% lower circuit on the BSE at ₹178.60 apiece.

ITC Hotels Share Listing Live: ITC Hotels share price lists at ₹188 apiece on the BSE, a discount of 30.37% to the discovered price of ₹270 per share. On NSE, ITC Hotels shares were listed at ₹180 apiece, a discount of 30.77% to the discovered price of ₹260 per share.

ITC Hotels Share Listing Live: ITC Hotels share price settles at ₹188 apiece in pre-opening on BSE, a discount of 30.37% to the discovered price of ₹270 per share. On NSE, ITC Hotels shares settled at ₹180 apiece in pre-opening as against discovered price of ₹260 per share.

ITC Hotels Share Listing Live: Following the demerger and listing of ITC Hotels Ltd, ITC Ltd shareholders are not expected to experience a material increase in value, as ITC Ltd's price will be adjusted to account for the holding company discount, said DevenChoksey Research.

ITC Hotels Share Listing 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, thus providing healthy growth opportunity going ahead. 

ITC Hotels Share Listing Live: Using an FY26E EBITDA estimate of ₹1,458 crore, DevenChoksey Research anticipates ITC Hotels listing to occur at an EV/EBITDA multiple of 20-25 times, implying a market capitalization range of ₹29,163 crore to ₹36,454 crore. This would result in a potential ITC Hotels listing price in the range of ₹140-175 per share.

ITC Hotels Share Listing Live: ITC Hotels shares will be removed from Nifty 50 and Sensex on T+3 day, which is listing, plus three business days. ITC Hotels demerger ratio was 1:10, meaning existing ITC shareholders received 1 ITC Hotels share for every 10 ITC shares. The parent ITC Ltd will retain a 40.0% stake in the new entity, with the remaining 60.0% distributed to shareholders.

ITC Hotels Share Listing Live: ITC Hotels is a demerged entity of cigarettes-to-FMCG conglomerate ITC Ltd. ITC Hotels’ last discovered price was ₹260 per share on the NSE and ₹270 per share on the BSE. Now, another price discovery session will take place today.

ITC Hotels Share Listing Live: The equity shares of ITC Hotels Ltd are set to be listed on stock exchanges today, January 29. ITC Hotels is a demerged entity of cigarettes-to-FMCG conglomerate ITC Ltd.