ITC Hotels Removed From Sensex And Other BSE Indices, Here's Why

ITC Hotels, the demerged entity that was separated from the expansive conglomerate ITC, has been removed from the Sensex, along with other indices in Asia's oldest exchange, the BSE.

ITC Hotels Removed From BSE

ITC Hotels, which runs the likes of ITC Maratha and other luxury hotels, was de-merged from ITC and was temporarily listed at the BSE for the purpose of portfolio rebalancing by passive funds.

The separate entity was only listed a week ago on January 29.

In a statement the exchange said, "As ITCHOTELS 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 opening of trading on Wednesday, February 5, 2025."

The said cut-off time mentioned in the statement came to pass at 2 pm, Tuesday, February 04.

On Tuesday, ITC Hotels share price closed for the day's proceedings with a decline of 4.16 per cent, slumping to Rs 164.65 apiece on the BSE. 

Sell Off In Force

This removal initiated a Rs 400 crore sale. In addition to that, it is also being reported that selling worth Rs 700 crore may also be seen when it is removed from the National Stock Exchange.

As per the information available on the BSE website, the equity's value stands at Rs 165.90, with gains of Rs 1.25 or 0.76 per cent.

At the NSE, as per the exchange website, the value stands at Rs 165.20, gaining Rs 1.46 or 0.89 per cent.

The ITC Hotels shares were listed at Rs 188 apiece on the BSE, and at Rs 180 apiece on NSE. The hospitality sector giant's market valuation has dropped from over Rs 39,000 crore at listing to a little over Rs 34,266 crore as of February 4.

As the company was not listed through an IPO, and it is in fact a de-merged entity a parent company. Since the price of the specific segments is not known, the markets take a few days to gauge the actual value of the stock.