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  1. ITC stock up 6% on reports of BAT selling 3.5% stake via block deals

ITC stock up 6% on reports of BAT selling 3.5% stake via block deals

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2 min read • Updated: March 13, 2024, 12:04 PM

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Shares of ITC soared at the markets after reports claimed that BAT, its biggest shareholder, has pared stake worth around ₹17,500 crore.

BAT is one of the earliest shareholders in ITC

The shares of ITC soared by 6% on the stock markets following reports saying that its biggest shareholder British American Tobacco has offloaded a 3.5% stake via block deals.

The entire stake has been sold at a price of ₹400.40 per share, taking the overall deal size to ₹17,491 crore, the reports said.

At 11:57 PM, the shares of ITC were trading at ₹428.7 on the NSE, up 6% as against the previous day’s close.

Following the block deals, a 180-day lock-in period will reportedly come into effect, which will prevent BAT from paring further stake till its conclusion.

After this stake sale, the overall shareholding of BAT in ITC will come down to 25.5%.

The shares of ITC, on March 12, had settled 1.83% lower at ₹401.9 on the NSE. This came in the backdrop of reports stating that BAT would reduce its stake in the company this week.

Notably, BAT is one of the earliest shareholders in ITC, with its first set of investments dating back to the 1900s. In a statement issued on March 12, BAT said that ITC has “delivered significant value for its shareholders,” and “BAT continues to be fully supportive of ITC’s management team, performance and strategy.”

"I am confident that ITC, under the stewardship of its current management, will continue to create further value for its shareholders. We look forward to remaining important shareholders in ITC as it continues its journey of growth," BAT Chief Executive Tadeu Marroco said.

In the quarter ended December 2023, ITC had reported a net profit of ₹5,572 crore, up 11% as compared to the year-ago period. The revenue from operations climbed 2% on-year to ₹17,651.85 crore.