ITC shares tumble 4% after reports of ₹9,400 crore block deal: What we know so far

ITC Ltd, the diversified conglomerate, was under selling pressure on Thursday, October 8, amid reports of a large block deal worth over ₹9,000 crore in the stock.

The stock slipped as much as 4.36% to ₹254.10 on the NSE.

According to news reports, a block deal worth around ₹9,400 crore took place in ITC. GQG is likely to have been the seller, while a banker indicated that it was a “clean-out trade”, suggesting that the overhang from the stake sale has been cleared.

A foreign long-only fund reportedly bought around one-third of the block, while the remaining shares were picked up by mutual funds, including Nippon India, ICICI Prudential, SBI, Kotak and Aditya Birla Capital, according to news reports.

What you need to know

GQG Partners is a global investment management firm founded by Rajiv Jain and is a significant institutional investor in ITC. The fund manager had built a sizeable position in ITC over the years, making its recent stake reduction an important development for the stock.

Analysts at CITI recently said they believe the earnings downgrade cycle is largely over and see a favourable risk-reward for the stock despite near-term pressures.

What happened in September

According to news reports, ITC undertook another round of cigarette price hikes in September, with Classic Connect prices rising by around 10% to ₹21.4/stick, while Gold Flake Super Star now costs ₹89 for a 10-cigarette pack.

This came after the earlier price increases in February, following the nearly 40% tax hike announced effective February 1.

Why the price hike is important

The cigarette price hike is significant for ITC as the segment is a key earnings driver for the company. Cigarettes account for around 40% of ITC’s segment revenue, but contribute a much larger share of its operating profit.

Therefore, any increase in cigarette prices can help ITC offset higher taxes, input costs, or other pressures on margins, while supporting revenue and profitability, provided the price hike does not lead to a meaningful drop in cigarette volumes.

What Sanjiv Puri said in July 2026

ITC expects its FMCG market to expand to around ₹8 lakh crore by 2035 as the conglomerate looks to strengthen its position through a combination of brand-building, digital commerce expansion, and strategic acquisitions, Chairman & Managing Director Sanjiv Puri said in July 2026.

Addressing shareholders at the company's Annual General Meeting (AGM), Puri said the Indian FMCG market was "poised for significant expansion" as the consumer landscape evolves rapidly.

"The rise of aspirational Bharat, premiumisation, Gen Z and Gen Alpha consumers, expanding digital access and the growth of quick commerce are reshaping categories, channels and expectations," he said.

To capitalise on these trends, ITC is leveraging an AI-led consumer insight ecosystem that enables micro-segmentation and supports the development of differentiated offerings tailored to evolving consumer needs, lifestyles and occasions, Puri said.