ITC Hotels’ Stock will be Taken from the Sensex and BSE Today: Get More Updates

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

ITC Hotels shares were momentarily added to the Sensex and other indexes for passive fund portfolio rebalancing. On January 29, ITC Hotels’ shares went public on Indian stock markets.

ITC Hotels Removed from Sensex and BSE Indices:

ITC Hotels’ stock will be removed from the Sensex and other BSE indexes before trade starts on February 5, 2025; hence, the share price will be the focus on Wednesday. Last month, ITC Hotels, a dissolved division of ITC Ltd., went public independently.

Passive funds temporarily added the stock to the Sensex and other indexes to rebalance their portfolios. On January 29, shares of ITC Hotels became up for sale on Indian stock markets.

ITC Hotels will no longer be included in the BSE indexes after it failed to reach the lower circuit limit by the deadline of 2:00 PM on Tuesday, February 4.

The business would be removed from all BSE indexes before the start of trade on Wednesday, February 5, 2025, after ITCHOTELS failed to reach the lower circuit by the deadline, per a notification posted on the BSE.

ITC Hotels’ stock closed at Rs 165, down 4.16%, yesterday night. Index trackers had to purchase shares worth around Rs 400 crore since the firm would be taken from the Sensex, and another Rs 700 crore is anticipated when it is also removed from the NSE Nifty.

The demerged company had an initial market valuation of Rs 39,126.02 crore and was floated on the NSE and BSE for Rs 180 and 188 per share, respectively. Its market value, however, has already fallen to Rs 34,266.48 crore. ITC Ltd. kept 40% of ITC Hotels after the demerger, with the remaining 60% divided 10:1 among ITC shareholders. Purchasing 100 shares in ITC Hotels would cost you Rs 54,040.

With an average room rate (ARR) that increased 51.9% (CAGR of 8.7%) from Rs 7,900 in FY19 to Rs 12,000 in FY24, ITC Hotels has shown excellent operational success. During the same period, Revenue Per Available Room (RevPAR) also increased significantly, rising from Rs 5,200 to Rs 8,200, or 57.7% (CAGR of 9.5%). Food and beverage revenue comprised 40% of overall revenue in FY24, while room sales comprised 52%.

According to analysts, a robust industry cycle, with little room for new construction and rising customer demand for upscale lodging, is expected to help ITC Hotels. Following the spin-off of its capital-intensive hotel sector, ITC will continue providing governance and brand support, improving ITC Hotels’ development prospects and ITC’s return profile.

Analysts are optimistic about ITC Hotels’ long-term prospects as it strengthens its position in the hospitality industry, notwithstanding possible short-term volatility in its stock.

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