Shares of ITC Hotels Ltd. — the demerged hotels business of ITC Ltd. — were listed at a discount of 30.4% on Wednesday at Rs 188 per share on the BSE, against the implied price of Rs 270 per share. On the National Stock Exchange, the shares debuted at a 30.7% discount at Rs 180 per share.

The implied price for the hotel’s arm derived was Rs 260 on NSE and Rs 270 on BSE based on the special pre-open session for ITC demerger.

After the demerger, the new entity continued to remain part of the Nifty 50 and the 30-stock Sensex at a dormant price of Rs Rs 26 per share and Rs 27, respectively.

The hotel’s shares will only be removed from the indices after the end of third day of listing. In case the share price of ITC Hotels hits the circuit on the first two days, then exclusion from the index will be deferred by another three days.

If the ITC Hotels’ share price does not hit the circuit in the first two days, it will be removed from the indices after the third trading day even if it hits it on the last day.

Based on the implied price, ITC Hotels’ market capitalisation stood at about Rs 54,000–56,000 crore. On listing, it is the second largest hotel company by market cap, and most expensive with 41-43 times 12-month forward enterprise value to Ebitda.

Owing to exclusion from benchmark indices, a passive outflow of $165 million is expected, as per Nuvama Alternative. The outflow is nearly 2.6% of the indicative market cap.

Business And Financials

Demerging the hotels arm will make ITC Hotels India’s second-largest hotels chain with 140 hotels and 12,965 keys (rooms). The company has another 46 hotels with 4,300 keys in the pipeline which will get operationalised by March 2030, taking the total number of properties to 186 with 17,265 keys.

ITC Hotels manages properties under Welcomhotel, Mementos, Storii, Fortune and WelcomHeritage brands.

At the end of 6 months to September 2024, the hotels business had a revenue of Rs 1,450 crore and profit before interest and tax of Rs 304 crore. The company has very negligible debt on its books and estimated profit after tax for the same period is at Rs 222 crore, assuming a tax rate of 27%.

. Read more on Markets by NDTV Profit.Based on the implied price, ITC hotels’ market capitalisation stands at about Rs 54,000–56,000 crore.  Read MoreMarkets, Business, IPOs, Notifications 

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