The stake will be sold to investors through an accelerated bookbuild process, the press release said, adding that the final number of shares sold will be determined to optimize the overall price outcome for the Group. The funds raised will help the company transition to its targeted leverage range of 2 to 2.5x adjusted net debt/adjusted EBITDA (ex-Canada) by the end of 2026.
Commenting on the development, BAT CEO Tadeu Marroco said the company’s direct shareholding in ITC Hotels was the result of the demerger process completed by ITC earlier this year. “As previously stated, a direct stake in ITC Hotels is not a strategic holding for BAT. Therefore, I am pleased that the proceeds from this transaction will further support continued progress towards our targeted 2026 leverage corridor,” he added.
Founded in 1975, ITC Hotels’ business has grown to include more than 140 hotels in over 90 destinations across the Indian subcontinent. Following a demerger from ITC Limited, ITC Hotels has been trading as a listed entity since January 2025. As a result of its shareholding in ITC at the time of the demerger, BAT has an approximately 15.3% stake in ITC Hotels. The promoter company ITC owns 39.85% stake in ITC Hotels.
The shares were listed on BSE at Rs 188 and at Rs 180 on NSE on January 29, 2025 with a market capitalization of around Rs 39,000 crore. The listing price was lower than what The Street had given earlier on January 6 during a special price discovery session in which the stock was assigned a value of around Rs 260 on Nifty and around Rs 270 on BSE indices.
Shares of ITC Hotels ended flat at Rs 207.80 on the NSE today.
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