ITC Hotels shares list at 31% discount on NSE, stock debuts at Rs 180 after demerger

ITC Hotels listing ceremony

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26 Aug, 2025 12:21

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Shares of ITC Hotels listed at a discovery price of Rs 180 per share on NSE on January 29. The IPO-less listing marks a discount of nearly 31 percent from its implied price of Rs 260 per share. This comes after the demerger of the firm from its parent organization ITC.

Last year, ITC had decided to demerge its Hotel business into a separate listed entity to unlock value for shareholders. It had fixed the demerger ratio at 1:10, which meant that shareholders holding 10 shares of ITC, as on January 6, 2025, would receive one share of ITC Hotels post the demerger.

Under the scheme of demerger, ITC Hotels shares have been issued directly to the shareholders of ITC in a manner that about 60 per cent stake is held directly by ITC shareholders proportionate to their shareholding in ITC and the remaining about 40 per cent stake to continue with ITC.

The stock exchanges, NSE and BSE, conducted a special trading session for ITC shares on January 6 to determine the value, via price discovery method, of ITC's hotel business post the demerger. ITC's share price without the value of the hotels business was discovered at Rs 455 each, down Rs 27 from the previous session's closing price, following the special pre-open session for price discovery.

As per the scheme, investments in hospitality entities forming part of the hotel business -- 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.

Notably, the listing price is slightly higher than Nuvama's estimate. The brokerage had expected the shares to be listed at a range between Rs 150-175 per share. It is also higher than  Sharekhan's estimated range of Rs Rs 150-170 per share. However, the  listing price is lower than Japanese brokerage Nomura's estimate which stood in the range of Rs 200–300 per share.