Wed Feb 05 07:00:00 UTC 2025: ## ITC Hotels Removed from Sensex After Brief Listing

**Mumbai, February 4, 2025** – ITC Hotels will be delisted from the Bombay Stock Exchange (BSE) Sensex and other BSE indices before trading opens on Wednesday, February 5th. The move comes just a month after the company’s separate listing following its demerger from parent company ITC Ltd.

The stock’s inclusion in the indices was temporary, implemented to facilitate portfolio rebalancing by passive funds. Because ITC Hotels did not hit its lower circuit breaker limit by the 2 PM deadline on Tuesday, the BSE proceeded with the removal. This resulted in index trackers selling shares worth over Rs 400 crore, with further selling expected on the National Stock Exchange (NSE) Nifty.

ITC Hotels shares closed at Rs 165 on Tuesday, a 4.16% decrease. The company initially listed at Rs 180 (NSE) and Rs 188 (BSE), giving it an initial market valuation of Rs 39,126.02 crore. This has since dropped to Rs 34,266.48 crore. The demerger saw ITC Ltd retain a 40% stake, with the remaining 60% distributed to its shareholders.

Despite the recent share price decline and delisting, analysts remain optimistic about ITC Hotels’ long-term prospects. The company has shown strong operational growth, with its Average Room Rate (ARR) increasing by 51.9% and Revenue Per Available Room (RevPAR) rising by 57.7% between FY19 and FY24. Analysts cite a strong industry cycle, limited new capacity, and growing demand for premium accommodations as positive factors. Continued brand support and governance from ITC Ltd are also expected to boost growth. While near-term volatility is anticipated, the long-term outlook for ITC Hotels remains positive.

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