ITC Hotels shares rally 4% ahead of Budget, stakeholders seek tax relief

Shares of ITC Hotels listed at a discovery price of Rs 180 per share on NSE on January 29.

Shares of ITC Hotels Limited rallied 4 percent to Rs 169 in morning trade on February 1 just minutes before the Finance Minister commenced presenting the Union Budget 2025, the first of Prime Minister Narendra Modi's third term in charge.

The hospitality and tourism sector is looking forward to policy measures that could unlock growth opportunities and address long-standing challenges. Industry leaders are calling for critical reforms, including infrastructure status for smaller hotel and convention projects, tax rationalization, and a streamlined compliance framework

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The Federation of Hotel & Restaurant Associations of India (FHRAI), among the largest hospitality associations globally is advocating for a single-window clearance system across state and central levels to cut through bureaucratic red tape. By reducing regulatory complexities, the sector expects to attract more domestic and international investors, strengthening India’s position as a global tourism hub.

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 of January 6, 2025, would receive one share of ITC Hotels post the demerger.

At about 10:55 am, shares of the company were trading at Rs 167, higher by 2.5 percent from the last close on the NSE.

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