ITC is demerging its hotel arm, offering investors one share of ITC Hotels for every 10 shares of ITC. Here’s how this impacts you.
ITC will keep 40% of the hotel shares, while shareholders will receive 60% of the demerged entity’s equity. The scheme is designed to maximize shareholder value.
ITC Hotels is expected to list at ₹125-175 per share, based on its estimated EV/Ebitda of 25-30 times FY26 figures. This is better than the initial market expectations.
The demerger comes at a time when the Indian hospitality sector is recovering. ITC Hotels is well-positioned to capitalize on this growth, making it an attractive investment.
With a goal of 200+ hotels and 18,000+ keys by FY30, ITC Hotels plans for rapid expansion and a significant increase in management fees.
ITC Hotels is a zero-debt company with a ₹1,500 crore cash infusion, giving it a solid foundation to grow. With 75% occupancy, its future looks promising.
By separating the hotel business, ITC will unlock shareholder value, allowing both companies to focus on their core strengths.