ITC Hotels' Stock Debut: A Sluggish Opening in a New Era

ITC Hotels Ltd, the newly demerged hotels business from ITC Ltd, saw its shares slip up to 5% on its stock exchange debut. The stock's initial price was Rs 188 on BSE and Rs 180 on NSE. ITC retains a 40% stake, while the rest is distributed among existing shareholders.

On Wednesday, ITC Hotels Ltd, newly separated from the FMCG giant ITC Ltd, had a challenging debut on the stock market, with shares dropping as much as 5% during initial trading hours.

The stock opened at Rs 188 on the Bombay Stock Exchange (BSE) and Rs 180 on the National Stock Exchange (NSE), eventually closing at its lower circuit limit on both exchanges.

Despite a zero-debt balance sheet and Rs 1,500 crore in cash reserves, the demerged entity's shares finished at Rs 178.60 on BSE and Rs 171.85 on NSE. ITC holds a 40% stake in this fresh enterprise, which aims to boost its hotel portfolio significantly in the coming years.

(With inputs from agencies.)