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Published 10:58 IST, February 5th 2025

ITC Hotels Removed From BSE Sensex Just A Week After Listing – Here’s Why

ITC Hotels, which listed on January 29 after demerging from ITC, is being excluded from the BSE Sensex today. Here's Why

Reported by: Gunjan Rajput
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ITC Hotels Demerger Set for January 2025
ITC Hotels Demerger | Image: R Business

ITC Hotels is being excluded from the BSE Sensex and other BSE indices today, February 5, just a week after its listing.

The company, which demerged from ITC Ltd. last month, began trading on January 29 at Rs 188 on the BSE and Rs 180 on the NSE . However, it soon faced selling pressure, with shares hitting a low of Rs 155.10 on the NSE post-listing.

ITC Hotels Demerger Ratio 
The demerger of ITC Hotels from ITC Ltd. became effective on January 1, 2025, with the record date set for January 6. The demerger ratio was 1:10, meaning ITC shareholders received one share of ITC Hotels for every ten shares of ITC they owned. A special trading session was held to determine the price of ITC Hotels stock post-demerger.

Why ITC Hotels Was Initially Included in the Sensex
Following its listing, ITC Hotels was temporarily included in the BSE Sensex and other indices to allow passive funds to rebalance their portfolios. However, its exclusion was deferred multiple times because the stock hit the circuit limit. The rule states that if a newly listed stock doesn’t hit the lower circuit for three consecutive sessions (upper or lower), it will be removed from the indices.

Since ITC Hotels failed to hit the lower circuit in three consecutive sessions, the Bombay Stock Exchange (BSE) confirmed its exclusion from the Sensex.
"As ITC Hotels did not hit the lower circuit till the cut-off time, the company will be dropped from all the BSE indices effective prior to the open of trading on Wednesday,” BSE stated in its notification on February 4.

ITC Hotels Demerger Share Price Today
Despite initial selling pressure, ITC Hotels saw some recovery. On February 5, at around 10:38 AM, the stock was trading at Rs 166.00, up 0.82%.

Updated 11:30 IST, February 5th 2025