ITC Hotel Stock Listed 31% Discount, investors disappointed
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ITC Hotels, the demerged business of ITC Ltd, is listed at 180 Rs on the NSE on January 29. ITC Hotel Price is 30.7% lower than the implied price of 260 Rs. Even After Listing, the Stock Crash was almost 3%, now trading at 174 Rs.
With This Demerger, existing ITC shareholders Got 1 Share of ITC Hotels for every 10 ITC Ltd shares they hold. If We talk about the Shareholding, ITC retains a 40% stake in the new Demerger Entity ITC Hotel, and the remaining 60% is distributed to shareholders.
The demerger of ITC Hotels refers to the decision made by the company to split its business operations into separate entities. This allows the Hotel segment to focus on its specific market and potentially unlock value for shareholders.
This was done to help unlock shareholder value and allow each business to operate more efficiently within its domain. The move was also seen as a way for ITC to boost the overall profitability of its high-growth businesses, like FMCG while giving its hospitality arm greater focus to capitalize on growth in the luxury and premium hotel sector.
ITC Hotels planning to expand its Hotel portfolio and aiming for over 200 properties by 2030. The company has a strong balance sheet and good news about having no debt and significant cash reserves.
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