ITC Block Deal: BAT To Sell Rs 11,600-Crore Stake, Say Sources
British American Tobacco, the top investor in ITC Ltd., is looking to pare its stake in the Indian cigarette-maker through block deals, sources told NDTV Profit on Tuesday.
BAT is looking to offload 2.3% stake for Rs 11,600 crore on Wednesday, the persons privy to the development said.
The office price for the block deal is Rs 400 per share, they added. This marks an 8% discount to the current market price.
BAT held a total of 20.31% stake in ITC as of March 31, 2025, according to the shareholding pattern available with the BSE. The shares are owned by its local subsidiary - Tobacco Manufacturers (India) Ltd.
If the stake sale goes through as indicated by sources, then BAT's holding in ITC could slip to 18%.
The London-listed nicotine products seller had also sold 43.6 crore shares, or about 3.5% shares of ITC, in March 2024. The stake was then offloaded for Rs 17,491 crore, which made it India's third-largest block deal ever.
ITC, which demerged its hospitality arm ITC Hotels Ltd. in January, posted a marginal growth in its net profit sans exceptional gains in the quarter ended March 2025. It increased by 0.8% year-on-year to Rs 4,874 crore. The revenue from operations increased by 9.6% to Rs 17.248 crore, as per the results declared last week.
Shares of ITC on Tuesday closed 1.85% lower at Rs 434.7 apiece on the NSE, compared to a 0.7% decline in the benchmark Nifty 50. The stock has declined by about 10.8% year-to-date.
Among the analysts tracking the company, 38 have a 'buy' rating on the stock, and one each recommend 'hold' and 'sell', as per Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 14.9%.
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