BAT pares its stake in ITC

British American Tobacco (BAT) has sold a 3.5% stake in ITC.

  • The stake has been sold in a block deal. BAT has realised a total of Rs 17,491 crore from the sale.
  • The transaction has taken place @ Rs 400/ share which is similar to the prevailing market price.
  • Post this stake sale, BAT’s shareholding in ITC will reduce from 29% to 25.5%.
  • BAT is unlikely to sell more shares in the near future as it doesn’t want its shareholding in ITC to fall below 25%.
  • It has sold ITC stake to buyback it’s own shares.
    • The company plans to buy back its shares over a period ending December 2025, it said in a statement, starting with 700 mn pounds worth in 2024.

Stake sale by BAT is short term positive for ITC.

  • It removes the overhang of supply as BAT’s stake sale plan was well known.
  • It increase the free float of ITC’s shares, increasing it’s weightage in the index.

Fundamentally though nothing has changed for ITC because of the stake sale.

Companies -
Notify of
1 Comment
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x