ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

By Nishang Narayan

Published on January 8, 2025

Following the demerger of ITC Hotels from its parent company, ITC Ltd., domestic brokerage firm Nuvama has predicted a passive outflow of approximately USD 180 million. This corporate action will have a notable impact on major indices such as Nifty50 and Sensex, with expected passive outflows of USD 110 million and USD 70 million, respectively.

Nuvama's analysis suggests that assuming ITC’s share price remains stable around INR 260 at the time of exclusion, the passive flow for Nifty50 will amount to USD 110 million (with a weight of 23 basis points), while Sensex will experience an outflow of USD 70 million (with a weight of 28 basis points).

A special price discovery session was held to adjust ITC’s share price, resulting in an INR 26 adjustment on NSE and INR 27 on BSE as the stock began trading ex-demerger on January 6. The demerger ratio of 1:10 (one share of ITC Hotels for every 10 shares of ITC Ltd.) has led to the valuation of ITC Hotels at approximately INR 260 on the Nifty50 indices and INR 270 on BSE indices.

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Until ITC Hotels is officially listed separately, it will be treated as a "dummy entity" with a fixed price, and the stock will be held at this value temporarily. According to Nuvama, ITC Hotels is expected to be listed within the next 30-40 days. Following the listing, ITC Hotels will be removed from all NSE and BSE indices at its last traded price, effective at the opening on the listing date, with a three-day adjustment period. If the stock hits circuit limits, the exclusion will be postponed by two trading days for each occurrence.

Nuvama also noted that ITC Hotels may qualify for inclusion in the MSCI Global Small Cap Indexes, but this will only happen if the stock is listed within 20 working days after the record date of the demerger.


Marriott Announces Dividend and Expands Share Buyback Plan

Marriott Announces Dividend and Expands Share Buyback Plan

By Manu Vardhan Kannan

Published on August 10, 2025

Marriott International, Inc. has declared a quarterly cash dividend of 67 cents per share on its common stock, reaffirming its commitment to delivering shareholder value. The dividend will be paid on September 30, 2025, to shareholders who are on record as of August 21, 2025.

Alongside the dividend announcement, the hospitality giant also revealed an expansion of its share repurchase program. The board of directors has authorized the repurchase of an additional 25 million shares of its Class A common stock. This comes in addition to the approximately 7.4 million shares that were still available under previous authorizations as of July 30, 2025.

Marriott has already bought back 6.4 million shares this year, amounting to $1.7 billion. These moves reflect the company’s continued confidence in its financial stability and long-term performance, aiming to strengthen shareholder value through strategic capital allocation.


Chennai Postal Services Still Disrupted: Experts Call for Alternative Systems Amid Software Transition

Chennai Postal Services Still Disrupted: Experts Call for Alternative Systems Amid Software Transition

By Author

Published on August 4, 2025

In what was intended to be a smooth digital transformation, postal services across the Chennai Circle continue to remain disrupted even days after a scheduled upgrade to India Post's new IT 2.0 system. The software transition—part of a broader effort to modernize the nation’s postal network—was implemented on August 2nd and 4th across Chennai North and South divisions. However, officials have now confirmed that technical issues still persist, leaving customers and businesses grappling with delayed or inaccessible services.

Key services such as Speed Post, registered mail, parcel bookings, and money orders have either been significantly slowed or paused altogether in many branches. Despite expectations that systems would normalize post-upgrade, the rollout of the Advanced Postal Technology (APT) system has proven more complex than anticipated.

“We are still working on stabilizing the system. There have been unforeseen glitches post-upgrade, and our teams are actively resolving them,” said a senior postal official who requested anonymity.

The disruption has raised concerns across industries—including the hospitality sector—where timely document dispatch, license renewals, vendor payments, and customer correspondence are crucial to daily operations.

Experts and industry stakeholders are now calling on India Post to introduce alternative operational strategies or backup mechanisms during such large-scale transitions.

“In a digital age where seamless service is non-negotiable, a complete blackout due to a software update is avoidable. A fallback process, whether manual or cloud-based, should be in place to ensure continuity,” said a Chennai-based hospitality consultant.

The hospitality industry relies heavily on postal services for legal documentation, international communication, and procurement logistics. The ongoing delays have caused bottlenecks not just in operations but also in customer experience delivery.

As authorities continue to work toward a resolution, the broader question remains: Should India’s essential public infrastructure be this vulnerable to a single system upgrade? The answer may lie in future-proofing core services with hybrid digital models that include disaster recovery plans and parallel systems.


Hospitalitynews.in will continue to track updates as the situation evolves.


IPO-bound Brigade Hotel Ventures Raises ₹126 Crore from 360 ONE, Cuts IPO Size

IPO-bound Brigade Hotel Ventures Raises ₹126 Crore from 360 ONE, Cuts IPO Size

By Nishang Narayan

Published on July 5, 2025

Brigade Hotel Ventures Limited, the second largest owner of chain-affiliated hotels and rooms in South India, has raised ₹126 crore in a pre-IPO placement round, bringing a strategic investor on board ahead of its planned initial public offering.

The company issued 1.4 crore equity shares to 360 ONE Alternates Asset Management Limited (360 ONE) at ₹90 per share (including a premium of ₹80) in consultation with lead bankers. This placement, representing 4.74% of Brigade Hotel Ventures’ pre-offer share capital, effectively trims the IPO size announced in the DRHP from ₹900 crore to ₹774 crore.

The company intends to use approximately ₹481 crore from the IPO proceeds for debt repayment, including ₹412 crore for Brigade Hotel Ventures and ₹69 crore for its subsidiary, SRP Prosperita Hotel Ventures. Additionally, around ₹108 crore is earmarked to purchase an undivided share of land from its promoter BEL, while the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.

A wholly owned subsidiary of Brigade Enterprises Limited, one of India’s leading real estate developers, Brigade Hotel Ventures owns and develops hotels across key Indian cities, with a strong focus on South India. The company operates nine hotels with 1,604 keys, holding the second largest portfolio of chain-affiliated hotels and rooms in South India, spanning Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, and the Union Territories of Lakshadweep, Andaman and Nicobar Islands, and Pondicherry.

With this pre-IPO boost from 360 ONE, Brigade Hotel Ventures is better positioned to move forward with a leaner public offering, a sharper focus on debt reduction, and strategic expansion in India’s growing hospitality sector.

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