US-based GQG Partners offloaded nearly 1.29 crore shares of ITC Hotels for Rs 197 crore in an open market transaction, trimming its stake in the hospitality firm. The sale, executed by affiliate GQG Partners Emerging Markets Equity Fund, cut the firm's holding from 1.97 per cent to 1.35 per cent at an average price of Rs 152.67 per share. ITC Hotels shares rose 3.90 per cent that day, closing at Rs 152.50 on the NSE despite the large block sale.
Breakdown of the Transaction
The deal, captured in NSE bulk deal data, involved 1.29 crore shares representing 0.62 per cent of ITC Hotels' equity. Valued at Rs 196.75 crore, the transaction reflects precise execution in a liquid market. NRI investor Rajiv Jain's GQG Partners, known for emerging markets focus, used this open market route rather than a block deal, allowing broader participation.
Shift in Ownership Dynamics
Prior to the sale, GQG held 1.97 per cent in ITC Hotels; post-transaction, that figure stands at 1.35 per cent. This reduction signals a strategic adjustment in portfolio allocation for the fund. Buyers remain unidentified, a common feature in open market trades, which disperses shares across multiple participants without centralized disclosure.
Market Signals and Hospitality Sector Context
The share price gain amid the sale points to sustained investor interest in ITC Hotels, possibly driven by the company's strong brand in India's growing hospitality sector. Foreign investors like GQG often book profits after initial post-listing rallies, reallocating to other opportunities in emerging markets. This move underscores confidence in ITC Hotels' fundamentals while highlighting fluid capital flows into Indian equities.
