Shares of ITC Ltd slumped 4% on 28 May after a large block deal of around 385 million equity shares representing a 3% stake of the company changed hands on the NSE.
According to reports, British American Tobacco (BAT) is considering further decreasing its stake in ITC through an on-market sale. BAT currently has a 20.3% interest in ITC.
According to a Business Standard report, BAT announced on Tuesday that its wholly owned subsidiary, Tobacco Manufacturers (India) Limited (TMI), plans to sell nearly 2% of ITC Limited’s issued ordinary share capital to institutional investors through an accelerated book build process (block trade).
According to media sources, BAT plans to sell 2.3% of its ownership, or 290 million equity shares, at a price of Rs 400 per share (~8% discount to last trading price), or Rs 11,600 crore.
However, BAT stated in the press release that there is no certainty that any such deal will take place, nor can there be any certainty about the terms of any potential sale. Last year, it sold 437 million shares (about 3.5% interest) for $2 billion (approximately Rs 17,000 crore or Rs 389 per share).
ITC Dividend
On 22 May 2025, ITC’s board recommended a final dividend of Rs 7.85 per share for the fiscal year ending 31 March 2025. The business has set Wednesday, 28 May 2025, as the record date for determining members’ eligibility for final dividend payments.
The company is a diversified consumption player in India, having operations in cigarettes, FMCG, agriculture, and paperboard, paper, and packaging (PPP). Its objective is to use profits generated from the cash cow cigarette sector to boost the expansion of FMCG and other industries. The corporation demerged and listed the hotel business independently, increasing shareholder value and providing better growth visibility.
At 12:17 pm, the shares of ITC were trading 3.16% lower at Rs 420.20 on NSE.
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