Thu Feb 06 10:00:56 UTC 2025: ## ITC Hotels Ousted from BSE Sensex, Triggering Heavy Selling

**Mumbai, February 5, 2025** – ITC Hotels Ltd. was removed from the Bombay Stock Exchange (BSE) Sensex and 22 other BSE indices today, prior to market opening. The move immediately triggered significant selling pressure, with index funds already offloading shares valued at over ₹400 crore. Further selling of approximately ₹700 crore is anticipated following the company’s expected removal from the National Stock Exchange (NSE) Nifty index.

The hotel chain’s shares, which listed on January 29th at ₹180 on the NSE and ₹188 on the BSE (a 31% discount from its implied price), are currently trading at ₹167.05, up ₹2.40 (1.46%) from yesterday’s closing price. However, before today’s announcement, shares experienced a 4.16% decline. The company’s market capitalization has fallen from ₹39,126.02 crore at listing to ₹34,266.48 crore.

ITC Hotels, recently demerged from ITC Ltd., saw its shares distributed to ITC shareholders at a 10:1 ratio, with ITC Ltd retaining a 40% stake. Despite the market turmoil and delisting, the company has reported strong operational performance. Its Average Room Rate (ARR) increased from ₹7,900 in fiscal year 2019 to ₹12,000 in fiscal year 2024 (an 8.7% compound annual growth rate), and Revenue Per Available Room (RevPAR) rose from ₹5,200 to ₹8,200 over the same period. Room sales account for 52% of the company’s total revenue, with food and beverage contributing 40%. The reasons for the removal from the indices were not explicitly stated in the provided text.

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