ITC Hotels to list on NSE & BSE on January 29; details here

Kolkata-based diversified conglomerate ITC Ltd announced on Monday that ITC Hotels, which was recently spun off 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 29th January 2025," ITC said in a regulatory filing.

Effective January 6, 2025, ITC Hotels was demerged from ITC and initially appeared as a placeholder entity in indices with a fixed price of approximately ₹260. Both exchanges held a special trading session for ITC shares to establish the value of ITC's hotel business following the demerger, using the price discovery method.

According to the scheme, investments in the hospitality companies that are part of the hotel business—including Bay Islands Hotels Ltd, Fortune Park Hotels Ltd, Landbase India Ltd, Srinivasa Resorts Ltd, WelcomHotels Lanka Pvt Ltd, Gujarat Hotels Ltd, International Travel House Ltd, and Maharaja Heritage Resorts Ltd—will be transferred to ITC Hotels.

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

The share allotment forms part of the restructuring process under Sections 230 to 232 of the Companies Act, 2013, which involves the demerger and reorganization of the two companies. ITC Hotels intends to seek approval for the listing of the newly allotted shares, which will be restricted from trading until the stock exchanges grant the required permissions.

Under the demerger arrangement, ITC will retain 40 per cent of the hotel’s shares, while the remaining 60 per cent will be equally distributed among current ITC shareholders.

The stock will not be part of the F&O segment as it needs a minimum trading history of six months to qualify.

As of October 2024, ITC Hotels manages more than 140 hotels with nearly 13,000 operational keys. The company aims to expand its portfolio to over 200 hotels and more than 18,000 keys by 2030. It also maintains a net cash surplus and has minimal debt on its balance sheet.