US investment firm GQG Partners offloaded nearly 1.29 crore shares of ITC Hotels for Rs 197 crore in an open market transaction, reducing its ownership from 1.97 per cent to 1.35 per cent. The sale, executed by affiliate GQG Partners Emerging Markets Equity Fund at an average price of Rs 152.67 per share, reflects calculated portfolio adjustments amid India's hospitality sector dynamics. ITC Hotels shares rose 3.90 per cent to close at Rs 152.50 on the NSE, signaling strong buyer interest despite the foreign investor's exit.
Transaction Breakdown
The bulk deal, captured in NSE data, involved 1.29 crore shares representing a 0.62 per cent stake in ITC Hotels. Valued at Rs 196.75 crore, the transaction underscores the liquidity of Indian hotel stocks for global funds. GQG Partners, led by NRI investor Rajiv Jain, targets emerging markets, and this move aligns with periodic rebalancing to lock in gains or redirect capital.
GQG Partners' Investment Approach
Rajiv Jain's firm has built a reputation for concentrated bets on high-quality emerging market companies, including Indian firms. Prior holdings in ITC Hotels positioned GQG to benefit from the hospitality arm's separation from parent ITC Limited, a demerger that sharpened focus on its core hotel business. Trimming the stake now suggests profit-taking after share price appreciation, a common tactic for funds managing concentrated positions.
Market Response and Broader Signals
Undisclosed buyers absorbed the shares without downward pressure, as evidenced by the 3.90 per cent price gain. This resilience points to sustained demand for ITC Hotels amid India's tourism rebound and corporate travel recovery. The reduced foreign ownership highlights ongoing flux in cross-border investments, where global funds adjust exposures based on valuation shifts and macroeconomic cues in sectors like hospitality.
