Wed Feb 05 16:31:06 IST 2025: ## ITC Hotels Removed from BSE Indices After Sharp Share Price Drop

**Mumbai, February 4, 2025** – ITC Hotels will be removed from all Bombay Stock Exchange (BSE) indices before trading commences on Wednesday, following a significant decline in its share price since its debut. The company, which was spun off from ITC Ltd. on January 29th, was temporarily included in indices to facilitate portfolio adjustments by passive funds.

The demerger saw ITC Hotels shares list at a substantial discount to their discovered price, opening at Rs 188 on the BSE and Rs 180 on the NSE. This represented a drop of over 30% compared to the pre-listing valuations. The stock further declined, closing at Rs 165 on Tuesday, a 4.16% decrease. This fall, coupled with the upcoming removal from indices, triggered significant selling pressure, with index funds already offloading over Rs 400 crore worth of shares. An additional Rs 700 crore in selling is anticipated following its removal from the NSE Nifty.

The BSE confirmed the removal in a notice, citing the stock’s failure to hit the lower circuit before the cut-off time. The delisting resulted in a considerable decrease in ITC Hotels’ market valuation, from Rs 39,126.02 crore at listing to Rs 34,266.48 crore.

Despite the short-term market volatility, ITC Hotels has reported strong operational performance. The Average Room Rate (ARR) has increased by 51.9% and Revenue Per Available Room (RevPAR) by 57.7% over the past five years, reflecting a robust growth trajectory. ITC Ltd. retains a 40% stake in ITC Hotels, while the remaining shares were distributed to ITC shareholders.

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