Nomura forecasts the ITC Hotels share to list between Rs 200 and Rs 300, while Nuvama Institutional Equities anticipates a listing price between Rs 150 and Rs 175.
ITC Hotels, a spin-off of the FMCG-to-cigarettes giant ITC Ltd., will go public on Wednesday.
ITC To unlock value for shareholders, the company opted to de-merge its hotel operations into a separate listed firm. The conglomerate set the demerger ratio of 1:10, implying that stockholders holding 10 shares of ITC on January 6, 2025 would receive one share of ITC Hotels following the demerger.
ITC Hotels would be maintained in all NSE and BSE indexes at a steady price for three business days after the listing. If the stock reaches circuit limits, the exclusion will be delayed for two trading days each time.
According to Nuvama, the initial market price for ITC Hotels shares might be between Rs 150 and Rs 175 per share.
According to Sharekhan, ITC’s hotel industry could command a higher valuation after listing than it does now, owing to improved market price discovery. The firm estimated that the price discovery for ITC Hotels shares would be in the range of Rs 150-170 a share.
Nomura, a Japanese brokerage, expected ITC Hotels to list between Rs 200 to 300 per share, which exceeded most predictions. As a result, the player’s market capitalization might range between Rs 42,500 crore and Rs 62,200 crore, according to the brokerage.
Following the special pre-open session for price discovery, ITC’s share price without the value of the hotels business was identified at Rs 455 per share on January 6, down Rs 27 from the previous day’s close.
Under the demerger model, ITC Hotels will issue equity shares directly to ITC shareholders in such a way that about 60% of the stake is held directly by ITC shareholders in proportion to their holdings in ITC, with the remaining approximately 40% stake staying with ITC, it stated.
