ITC Hotels Stock In Focus As BAT Set To Offload Rs 3,000-Crore Worth Shares

Shares of ITC Hotels Ltd. will be in focus on Friday, as British American Tobacco Plc. is set to offload shares worth nearly Rs 3,000 crore in ITC Hotels Ltd. via large deals. The company will sell shares at a floor price of Rs 205.65 in the secondary market, according to a termsheet.

BAT affiliates Tobacco Manufacturers (India) Ltd., Myddleton Investment Co. and Rothmans International Enterprises Ltd., intend to sell between 7% and 15.3% of the share capital in ITC Hotels to investors by way of an accelerated bookbuild process, the company said in a regulatory filing.

The final number of shares sold will be determined to optimise the overall pricing outcome to the Group, the filing said.

The UK company's direct shareholding of 15.3% in ITC Hotels was a result of the demerger process that was completed by ITC Ltd. earlier this year. The current market value of its equity holding is Rs 6,600 crore.

A direct stake in ITC Hotels is not a strategic holding for BAT, said CEO Tadeu Marroco, adding that the proceeds from this transaction will further support continued progress towards their stated 2026 deleveraging plan.

British American Tobacco held a 22.9% stake in ITC as of September. ITC owns 39.85% in ITC Hotels.