00:00On Wednesday, i.e. today, on February 5, before the start of the share market work, a big update
00:06came with the shares of ITC Hotels listed on recent exchanges.
00:11ITC Hotels was excluded from Sunsex.
00:14In fact, recently, a company established as ITC Hotels, apart from ITC,
00:19was included in Sunsex and other indexes to rebalance the portfolio through a passive fund.
00:26Now the news has come that it has been excluded from Sunsex.
00:29What is the reason behind this?
00:31And how will this decision affect the share market and its investors?
00:36Let's tell you everything in detail in this video.
00:39ITC Hotels started trading on January 29, 2025.
00:44In fact, as the company's market capitalization is decreasing,
00:48it is being excluded from all indexes of BSE.
00:52ITC Hotels' shares were closed at Rs 165 on Tuesday, i.e. yesterday, on February 4, with a fall of 4.16%.
01:01Due to being out of stock from Sunsex, index trackers had to sell shares worth more than Rs 400 crores.
01:08And NSE Nifty is expected to sell an extra Rs 700 crores.
01:14ITC Limited and ITC Hotels business demerger was effective from January 1, 2025.
01:21While the listing of shares took place on January 29,
01:25the separate unit started at Rs 180 and Rs 188 per share on the National Stock Exchange and Bombay Stock Exchange.
01:33At the time of listing, its market capital was Rs 39,126.02 crores,
01:39which has now fallen to Rs 34,266.48 crores.
01:46Under the demerger, ITC Limited kept 40% stake in ITC Hotels,
01:52while the remaining 60% ITC shareholders were allotted in a 10-to-1 ratio.
01:58According to the company, the total acquisition cost of 100 shares of ITC Hotels is Rs 54,040.
02:03ITC Hotels' operational performance was strong.
02:06In FY19, its average room rate was Rs 8,900, which increased to Rs 12,000 in FY24.
02:14During this time, its average room rent has increased by 51.9%.
02:18In addition, the revenue of each available room has also increased from Rs 5,200 to Rs 8,200, which is an increase of 57.7%.
02:27In FY24, the sale of the room contributed 52% in total revenue, while 40% in food and beverage.
02:36So what is your opinion on this news?
02:38Give us your opinion in the comment box and keep watching GoodReturns for such updates.
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