ITC Hotels stumbled on its stock market debut on January 29, listing at a steep discount after its demerger from parent company ITC Ltd. The shares opened at ₹188 on the BSE, marking a 30.37% drop from the discovered price of ₹270, while on the NSE, they debuted at ₹180, down 30.77% from ₹260. The downward momentum continued post-listing, with ITC Hotels hitting the 5% lower circuit at ₹178.60. The demerger, executed at a 1:10 ratio, granted ITC shareholders one ITC Hotels share for every ten ITC shares held. ITC Ltd retains a 40% stake, while the remaining 60% is distributed among shareholders. Analysts at DevenChoksey Research do not foresee a significant uplift in ITC Ltd’s value post-demerger, as its stock price adjusts for the holding company discount. Following the separation, the brokerage revised its ITC Ltd target price from ₹534 to ₹520, citing adjustments in the hotel segment’s valuation. Strategically, the demerger is positioned to unlock value by enabling ITC Ltd to concentrate on its core high-margin businesses, while ITC Hotels gains independence to tap into industry growth and attract investors.