Shares of ITC Hotels fell in debut trade on Wednesday, following its spin-off from consumer goods firm ITC, valuing the luxury hotels operator at 364.2 billion rupees ($4.21 billion).
The stock listed at 175 rupees on the National Stock Exchange, compared to a discovered price of 180 rupees determined during a pre-open trading session. It was last down 4% at 172.75 rupees.
ITC had in July 2023 said it would spin off its hotel business into a separately listed firm to focus on its core cigarettes and food business.
Shares of the parent firm, which owns a 40% stake in ITC Hotels, were down 0.7%.
ITC Hotels, with its luxury property offerings, is stepping into the equity market at a time when rich Indians are splurging on premium products ranging from watches to cars, apartments and even bathrooms.
It operates more than 140 properties across India, Nepal and Sri Lanka, and offers premium amenities and services including private swimming pools, spas, jacuzzis, and desert safaris to tourists.
India's luxury hotels market is expected to be valued at $4.83 billion by 2030 from $2.99 billion in 2025, estimates from market analytics firm Mordor Intelligence showed.
