ITC is a diversified Indian conglomerate founded 115 years ago in year 1910. Since the company has diversified in many sectors, including consumer goods (Aashirvaad Atta, Bingo etc), paperboards, agriculture, and information technology, read more about the history here if interested.
And have demerged its hotel business as a separate entity “ITC Hotels”.
Anyone holding ITC stock has received 1 share of ITC Hotels for 10 shares of ITC on the record date of 6th Jan 2025. Use the calculator below to calculate the number of shares you received or had received if you had ITC stock holding.
When did the stock started trading for general public ?
ITC Hotels started trading on NSE & BSE on 29th Jan 2025 for the general public the share has since been in the red
Source: Tickertape here
Shareholding Pattern
ITC Hotels has issued equity shares directly to the shareholders of ITC in a manner that about 60% stake is held directly by ITC shareholders proportionate to their shareholding in ITC and remaining about 40% stake to continue with ITC.
Overall, existing ITC shareholders will hold 100% of ITC Hotels, i.e. about 60% directly and balance of about 40% through their shareholding in ITC
Calculate how many ITC Hotels Share I will receive?
Key Facts
- ITC Hotels contributed only about 4% of the revenue for ITC pre-demerger & even smaller contributions to ITC profits.
- ITC still holds 40% of ITC hotels to avoid possibility of future takeovers by competition & also have skin in the game in hospitality business & 60% is owned by the existing shareholders.
- ITC hotels operate in ultra luxury & luxury segment and owns brands such as Mementos, WelcomHotel, Fortune and others
Financials
Source: ITC press release here
Opportunity or Trap: ITC Hotels
Hotels is a cyclical business, and it will be interesting to see how ITC Hotels sail the boat of time without its parent company ITC to shield it and having to compete with competitors without near infinite financial resources & good will of the parent brand in the market.
ITC has done a good job at giving ITC hotels a strong head start demerging it debt free and with a pile of cash standing at ₹1500 crore, making ITC hotels the only publicly traded hotels brand to be debt free and have cash for disposal to invest in revenue growth.
We need to watch out for next 4-6 quarters of independent ITC hotels performance to form a strong opinion and you should do your own research before investing or divesting from the stock.
Quick Links
Hotels business demerger Press releases & updates: here
About ITC
Website: itcportal.com
Investor Relations: here
About ITC Hotels
Website: itchotels.com
Investor Relations: here
