ITC Hotels has officially been removed from the BSE Sensex and 22 other indices as of February 5, 2025. This decision was made after the stock failed to hit the lower circuit limit by the set deadline, prompting the Bombay Stock Exchange (BSE) to announce its exclusion before trading began.
In the previous session, ITC Hotels’ shares closed at ₹165, dropping 4.16%. As a result of its removal from the indices, index-based funds had to sell off shares worth over ₹400 crore, with another ₹700 crore expected to be offloaded once the stock is also removed from the NSE Nifty.
ITC Hotels started trading as an independent company on January 29, debuting at ₹180 on the NSE and ₹188 on the BSE. Initially, its market value was around ₹39,126 crore, but it has since fallen to approximately ₹34,266 crore. The demerger allowed ITC Ltd to keep a 40% stake in ITC Hotels, while the remaining 60% was distributed to shareholders at a 10:1 ratio.
Despite strong performance indicators—such as its Average Room Rate (ARR) rising from ₹7,900 in FY19 to ₹12,000 in FY24—ITC Hotels’ stock has been highly volatile. After reaching ₹189 on its debut day, the share price has fluctuated, recently hitting a low of ₹161.05.
The stock was temporarily included in major indices to help passive fund investors rebalance their portfolios following the demerger. However, with this latest removal, investors will now need to adjust their strategies as ITC Hotels moves forward without being part of these key indices.
