ITC Hotels Shares List At Rs 180 On NSE & Rs 188 On BSE: A 30% Drop From Expected Price

ITC Hotels, the demerged arm of ITC Limited, made its debut on stock exchanges today, January 29, 2025.

Shares of the company are listed at Rs 180 on the National Stock Exchange ( NSE ) and Rs 188 on the Bombay Stock Exchange ( BSE ). This marks a significant deviation from the initial market expectations, which had predicted the stock price to settle between Rs 150 to Rs 300 per share.

ITC Hotels Share Price Today 
The demerger of ITC's hotel business came into effect on January 1, 2025, with the record date set for January 6, 2025. As part of the demerger, ITC issued shares of ITC Hotels in a 1:10 ratio, meaning that for every 10 shares of ITC, shareholders received 1 share of ITC Hotels.
Trading in the newly listed shares began promptly at 10 AM after the pre-open session, with the stock settling at Rs 180 on the NSE and Rs 188 on the BSE.

The price was a steep drop from the previous close of Rs 270, further highlighting the difference in market sentiment compared to the earlier price discovery session.

ITC Hotels: Revised Cost of Acquisition for Shareholders
ITC also made a notable revision regarding the cost of acquiring shares. According to the company's filing on January 28, 2025, the total cost of acquiring 100 shares of ITC Hotels Ltd is now Rs 54,040, up from the previously disclosed figure of Rs 50,040.

Valuation of ITC Hotels
As per the BSE, ITC Hotels was valued at Rs 39,126.02 crore at the time of listing. Despite this substantial valuation, the stock's listing at lower-than-expected prices raised questions among analysts and investors.

Market Reactions and Predictions
Several brokerage firms had predicted that ITC Hotels would list at a significantly higher price, given the brand's recognition and large-scale operations in the hospitality sector. However, the drop in its listing price suggests a cautious outlook in the market, with some analysts speculating that the post-demerger volatility could have impacted investor confidence.

The demerger has been a major event for the 37 lakh ITC shareholders, and many will be keenly watching how ITC Hotels' stock performs in the coming days.