ITC Hotel shares will not get listed today: Details here

In a significant update, ITC Hotels shares will not be listed today – A special pre-open trading session is being conducted by the BSE and NSE from 9 am to 10 am for price discovery.

Key Details:

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  • ITC Hotels shares will undergo a price discovery process but will not trade today.
  • Stock exchanges will create a dummy ticker to reflect ITC Hotels as the 51st Nifty stock and 31st Sensex stock until the formal listing occurs, which is anticipated by mid-February 2025.

Nuvama’s Report Highlights:

  1. Passive Selling Pressures:
    Nuvama warns that ITC Hotels may face passive selling pressures upon listing as passive fund managers might offload shares during the initial phase. This could result in temporary price volatility.
  2. Derivatives and Liquidity Concerns:
    • ITC Hotels is unlikely to be included in derivatives trading for six months, as per SEBI’s regulations.
    • These restrictions could affect liquidity initially, but Nuvama notes that its inclusion in indices like the MSCI Global Small Cap Index will provide long-term support.
  3. Valuation Projections:
    • ITC Hotels: ₹150-175 per share.
    • ITC Post-Demerger: Expected to adjust downward by ₹18 per share.
  4. Operational Metrics and Market Positioning:
    • The report highlights ITC Hotels’ strong operational performance and market positioning, which aligns with the projected valuation.
  5. Shareholder Value Creation:
    • Nuvama views the demerger as a significant step in unlocking value for ITC shareholders, making ITC Hotels a key stock to watch in early 2025.
  6. Index Inclusion & Adjustments:
    • Post-Demerger: ITC Hotels is expected to be included in the Nifty 500, with broader index inclusion likely once trading stabilizes.
    • Active and passive fund managers are expected to adjust their portfolios during this period.