Wed Feb 05 03:10:00 UTC 2025: **ITC Hotels Removed from Sensex After Short-Lived Listing**

**Mumbai, February 5, 2025** – ITC Hotels’ shares were removed from the Bombay Stock Exchange (BSE) Sensex and other indices today, just a month after its separate listing. The demerged entity of ITC Ltd. failed to meet the lower circuit breaker threshold by the 2 PM deadline on Tuesday, triggering its removal.

The move is expected to result in significant passive selling pressure, with index trackers estimated to offload over ₹400 crore worth of shares. Further selling pressure of around ₹700 crore is anticipated following its removal from the NSE Nifty 50 index. The share price closed at ₹164.65 on Tuesday, a 4.16% decrease. This represents a considerable drop from its listing price of ₹188 on the BSE and ₹180 on the NSE, which were already significantly discounted from the discovered price.

While the demerger saw strong initial interest, ITC Hotels’ market valuation has fallen from over ₹39,000 crore at listing to just over ₹34,266 crore. The company, however, boasts strong operational performance with significant year-on-year growth in Average Room Rate (ARR) and Revenue Per Available Room (RevPAR). It also possesses a substantial hotel portfolio and ambitious growth plans.

Analysts point to a healthy return on capital employed (RoCE) and a net cash surplus as positive indicators for future growth. Despite the immediate impact of index removal, the long-term prospects of ITC Hotels remain a subject of ongoing market analysis. Investors are advised to seek professional financial advice before making any investment decisions.

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