ITC Hotels shares to be removed from Sensex and other BSE indices today

ITC Hotels shares to be removed from Sensex and other BSE indices today ITC.

Hotels shares were temporarily included in the Sensex and other indices for portfolio rebalancing by passive funds. ITC Hotels stock was listed on Indian stock exchanges on January 29.

ITC Hotels share price will be in focus on Wednesday as the stock will be removed from Sensex and other BSE indices before trading begins on today, February 5, 2025. ITC Hotels is the demerged entity of ITC Ltd and was listed separately last month.


ITC Hotels shares were temporarily included in the Sensex and other indices for portfolio rebalancing by passive funds. The stock was listed on Indian stock exchanges on January 29.


As the ITC Hotels shares did not hit lower circuit till the cut-off time on Tuesday, February 04, 2 pm, it will be removed from the BSE indices.


“As ITCHOTELS did not hit the lower circuit till the cut-off time, the company will be dropped from all the BSE Indices effective prior to the open of trading on Wednesday, February 5, 2025,” a notice on BSE said.


On Tuesday, ITC Hotels share price ended 4.16% lower at ₹164.65 apiece on the BSE. The stock is estimated to witness passive selling worth over ₹400 crore by index trackers due to its exclusion from the Sensex. Additionally, ITC Hotels shares may also see another ₹700 crore worth of selling when the stock is removed from NSE Nifty 50.

ITC Hotels Listing

ITC Hotels share price was listed at ₹188 apiece on the BSE, and at ₹180 apiece on NSE. The stock was listed at over 30% discount to the discovered price of ₹260 per share on the NSE and ₹270 per share on the BSE. ITC Hotels market valuation has dropped from over ₹39,000 crore at listing to a little over ₹34,266 crore as of February 4.




ITC Hotels Demerger

ITC Hotels is a demerged entity of cigarettes-to-FMCG conglomerate ITC Ltd. 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 retained a 40.0% stake in the new entity, with the remaining 60.0% distributed to shareholders.


ITC Hotels demerger effective date was January 1, 2025, while the ITC Hotels demerger record date was January 6.
Also Read | ITC Hotels Share Price Highlights: Stock ends 5% lower on listing day


ITC Hotels has shown strong operational performance, with its Average Room Rate (ARR) rising from ₹7,900 in FY19 to ₹12,000 in FY24, reflecting a 51.9% increase (CAGR of 8.7%). Revenue Per Available Room (RevPAR) also climbed from ₹5,200 to ₹8,200 in the same period, a 57.7% rise (CAGR of 9.5%). In FY24, room sales contributed 52% to total revenue, while food and beverage made up 40%.


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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, analysts said.


Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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The company has a notable background in shipbuilding and maritime initiatives, having successfully designed and delivered specialized vessels. These include a Fast Patrol Vessel for the Indian Coast Guard, a passenger ferry that was exported to Guyana, and Coastal Research Vessels such as Sagar Tara and Sagar Anveshika.



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The Indian government is actively promoting self-reliance (Atmanirbharta) in the defense and maritime sectors, prompting the company to enhance its initiatives in this area. Their shipyard has received approval for warship construction, with essential registrations from the Indian Navy, Indian Coast Guard, Ministry of Earth Sciences, and Shipping Corporation of India.