ITC Hotels shares lower after block deal: 9% equity worth ₹3,856 crore changes hands, says report

The CNBC-TV18 report added that the transaction was worth ₹3,856 crore and the deal took place at ₹205.65 per share.

British American Tobacco p.l.c. ("BAT") on Thursday said its wholly-owned subsidiaries, Tobacco Manufacturers (India) Limited, Myddleton Investment Company Limited and Rothmans International Enterprises Limited, intend to sell between 7% and 15.3% of the issued ordinary share capital in ITC Hotels to investors via block trade.

The proceeds will be used to progress to within the target 2-2.5x adjusted net debt/adjusted EBITDA leverage corridor (adjusted for Canada) by the end of 2026, BAT said in its press release on December 4.

According to news reports, British American Tobacco (BAT) on Friday was expected to sell a 7% stake through a block deal worth ₹2,998 crore.

There will be a 60-day lock-in period for the sellers, as per the reports.

The press release added that following a demerger from ITC Limited (“ITC”), ITC Hotels has been trading as a publicly listed entity since January 2025. As a result of its shareholding in ITC at the time of the demerger, BAT holds around 15.3% shareholding in ITC Hotels.

Tadeu Marroco, Chief Executive of BAT, said, “Our direct shareholding in ITC Hotels was a result of the demerger process that was completed by ITC earlier this year. As previously stated, a direct stake in ITC Hotels is not a strategic holding for BAT; therefore, I am pleased that the proceeds from this transaction will further support continued progress towards our stated 2026 leverage corridor.”

ITC Hotels Q2 FY26 Results

ITC Hotels reported a nearly 74% rise in consolidated net profit for the second quarter ended in September at ₹133.29 crore, on higher revenue from operations.

The company, which was listed on the stock exchanges earlier this year after its demerger from ITC Limited, had posted a net profit of ₹76.63 crore a year ago.

In a statement, ITC Hotels observed that the hospitality sector remains well-positioned for expansion, backed by robust domestic travel, evolving consumer preferences, and continued government focus on tourism infrastructure.

The outlook for the second half of FY25-26 remains positive, with strong fundamentals and rising discretionary spending expected to drive business in the hospitality sector, ITC Hotels said.

Recent policy measures, including GST rate rationalisation and monetary easing, are expected to boost consumer spending going forward, it observed.