ITC Hotel Block Deal GQG Partners has sold 1.3 crore shares
GQG Partners has sold 1.3 crore shares, representing a 0.62% stake in ITC Hotels, through a ₹197 crore block deal at an average price of ₹152.67 per share. This reduces the US fund's holding from 1.97% to 1.35%, amid a 20% stock correction over three months, though ITC Hotels shares still gained 3-4% that day.
ITC Block Deal Breakdown
Transaction Details:
- Seller: GQG Partners Emerging Markets Equity Fund
- Shares Sold: 1.29-1.3 crore (0.62% equity)
- Deal Value: ₹196.75-197 crore
- Avg Price: ₹152.67/share
- Date: April 8, 2026 (NSE bulk deal data)
Buyers remain unidentified, typical for large block trades.
ITC Hotels Context
Recent Performance:
- Q3: Occupancy +200 bps YoY, ARR +8.6%
- Real estate revenue: ₹81.5 Cr (EBIT ₹26.5 Cr)
- Headwind: ₹52.5 Cr gratuity provision
Post-Demerger (Jan 2025):
- ITC holds 40%; public gets 60%
- Stock corrected 20% on global uncertainty
Market Reaction
Despite the stake sale, ITC Hotels closed higher:
- BSE: +3.27% to ₹151.60
- NSE: +3.90% to ₹152.50
Investors focused on operational strength over FII profit-taking.
Brokerage Outlook
- Hotel growth via new properties (1,000+ keys FY27)
- Real estate revenue scaling FY28
- Recent correction "overdone"; 14% EBITDA cut FY26
Strategic Implications
For GQG: Portfolio rebalancing amid hotel sector volatility.
For ITC Hotels: Steady ops offset FII exit; long-term expansion intact.
For Investors: Block deal at discount to TP signals entry opportunity.
Strengths
- Operational resilience despite FII sale.
- Hotel occupancy/ARR growth intact.
- Real estate as key revenue driver.
- Brokerages maintain Buy ratings.
- 3-4% stock gain post-deal.
Risks
- 20% correction signals sector weakness.
- Gratuity/other provisions hit earnings.
- FII exit may trigger more selling.
- Global uncertainty impacts travel.
- Portfolio ramp-up execution risks.
FAQs
