ITC Hotels Ltd has been removed from the BSE Sensex and 22 other BSE indices effective February 5, 2025, prior to market opening. The shares are now trading at ₹167.05 up by ₹2.40 or 1.46 per cent on the BSE at 11.09 am.
The hotel chain’s shares, which last traded at ₹165, saw a 4.16 per cent decline before the announcement.
The exclusion is triggering significant selling pressure, with index funds offloading shares worth over ₹400 crore. An additional ₹700 crore in selling is expected following its anticipated removal from the NSE Nifty.
The company, recently demerged from ITC Ltd, had listed on January 29, 2025, at ₹180 on NSE and ₹188 on BSE, marking a 31 per cent discount from its implied price of ₹260. Under the demerger structure, ITC retained a 40 per cent stake while 60 per cent was distributed to ITC shareholders in a 10:1 ratio.
Despite challenging market conditions, ITC Hotels has shown strong operational metrics. Its Average Room Rate increased from ₹7,900 in FY19 to ₹12,000 in FY24, representing a CAGR of 8.7 per cent. Revenue Per Available Room also improved from ₹5,200 to ₹8,200 during the same period.
The company’s market valuation has decreased from ₹39,126.02 crore at listing to ₹34,266.48 crore. Room sales contribute 52 per cent of total revenue, with food and beverage accounting for 40 per cent.