ITC Hotels Ltd. shares experienced a 3% dip in Wednesday's trade following the announcement of the successful completion of its acquisition of GHK Hospitality. The deal, valued at an enterprise value of Rs 155 crore, was finalized on a cash-free, debt-free basis.
The acquisition, completed on September 1, involved the purchase of 2,82,27,741 equity shares of GHK Hospitality. This comprised 1,54,54,545 equity shares through primary subscription and an additional 1,27,73,196 equity shares via secondary purchases, as detailed in the company's filings to the stock exchanges.
Strategic Expansion in Ahmedabad
GHK Hospitality, a public limited company based in Ahmedabad, Gujarat, operates within the hospitality sector. It is the owner of Welcomhotel Ahmedabad, a significant 130-key hotel. The acquired company reported an annual turnover of Rs 35.16 crore in FY26, showing growth from Rs 31.23 crore in FY25 and Rs 25.62 crore in FY24.
ITC Hotels stated that this strategic transaction is expected to bolster its owned asset portfolio in Ahmedabad across various market segments. The Welcomhotel Ahmedabad is currently operated by ITC Hotels under an existing services agreement, making this acquisition a natural progression. The company anticipates capitalizing on Ahmedabad's diverse, year-round demand through this expanded presence.
Market Reaction
Following the news, ITC Hotels shares opened at Rs 161 apiece on the BSE, a slight drop from its previous close of Rs 161.65. The stock subsequently hit a low of Rs 155.95 apiece during the trading session, reflecting the 2.67% decline.