The National Stock Exchange (NSE) announced on Monday, January 27, that shares of ITC Hotels Ltd., the demerged hotels division of FMCG major ITC Ltd. will begin trading on Wednesday, January 29.
Shareholders of ITC Ltd. have received one share of the demerged hotels business for every 10 shares of the parent company they have owned.
The last discovered price for ITC Hotels was ₹260 per share on the NSE and ₹270 per share on the BSE. Another price discovery session will take place on January 29, 2025.
According to a note from Nuvama Alternative & Quantitative Research, ITC Hotels will meet the criteria for inclusion in the MSCI Global Small Cap Indexes and thus it will migrate from the Standard index to the smallcap one. The stock in the Standard index currently is the dummy stock. There is currently no update on whether the stock will remain in the FTSE index.
“Assuming the current static price of around ₹260 remains on the day of exclusion, the passive flow for Nifty 50 will be around $100 million (current weight of 23 bps), and for Sensex, it will be around $65 million (current weight of 28 bps). If the stock hits circuit limits on day of exclusion, then exclusion will be postponed by two trading days for each instance.,” the note said.
The stock will not be included in the F&O space as it requires a minimum trading history of six months for the same.
ITC Hotels operates with over 140 hotels and nearly 13,000 operating keys as of October 2024. It has plans to grow its portfolio to over 200 hotels and over 18,000 keys by 2030. It also has a net cash surplus with negligible debt on its books
Shares of ITC ended 0.4% lower on Monday at ₹439.9. The stock is already trading ex-its hotels business.
