International brokerage firm Jefferies expects ITC Hotels to see significant outflows on account of ETF selling. According to their latest report on the newly listed stock Jefferies highlighted that “ITC Ltd is part of key indices, ITCH could see outflows to the tune of $190-200 million (based on stock price) related to ETF selling in the stock.”
That apart Jefferies also expect BAT or British American Tobacco to sell some of its stake in ITC’s demerged hotel business, “British American Tobacco (BAT) will hold ~15% of the demerged Hotel entity (it has 25% stake in ITC Ltd). Earlier in October-24, BAT’s mgmt had said that it had no intention for BAT to be shareholders in ITC hotels in India, and that it intends to sell stake at the right time.”
ITC Hotels listed at Rs 188 on the BSE and Rs 180 on the NSE on January 29. It however, gave up gains in intra-day trade and closed at Rs 178, near the day’s lows. ITC Hotels initial market capitalisation is approximately Rs 39,000 crore.
Also Read ITC Hotels will list tomorrow- 10 things that shareholders need to know now When will ITC Hotels list on exchanges- Here is what we know so far What will be the price of ITC Hotels share? Listing date, price, valuation and all other details ITC Share demerger: When will you get the ITC Hotel shares in your account? ITC demerged hotel business in 1:10 ratio
The demerger of ITC’s hotel business was executed through a Scheme of Arrangement approved by the NCLT. Under this structure, ITC shareholders directly received approximately 60% of ITC Hotels equity in proportion to their ITC holdings. Furthermore, the parent company, ITC retained the remaining approximately 40% stake in the demerged entity. The demerger ratio was set at 1:10, which means that the shareholders received one share of ITC Hotels for every ten shares of ITC.
Also ReadITC Hotels lists at Rs 188 on BSE – Listing price 7.5% higher than popular estimates Jefferies bets on ITC Hotels strong position in hospitality sector
The brokerage firm further highlighted that ITC Hotels holds a strong position in the Indian hospitality industry. Among listed players, it is the second-largest after Indian Hotels Company (IHCL).
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