As the largest shareholder in ITC, BAT sold approximately 43.7 crore shares at an average price of Rs 400, representing a 0.01 percent discount compared to the previous session’s closing price of Rs 404.45.
Following the transaction, ITC shares surged by 6.3 percent to Rs 429.9 apiece on the NSE at 9:35 am.
According to CNBC Awaaz, BAT aimed to sell up to 43.69 crore ITC shares through accelerated book building at Rs 384-400.25 per share. Sources suggest that Capital International or GIC Singapore may acquire a stake in ITC, with interest also shown by domestic funds such as ICICI Prudential MF and Aditya Birla Mutual Fund, among others. The sale will reduce the holding of ITC’s largest shareholder from about 29 percent to approximately 25.5 percent. BAT is required to wait 180 days before further reducing its stake.
BAT’s initial investment in ITC dates back to the early 1900s. Despite the divestment, BAT expressed full support for ITC’s management team, performance, and strategy.
The divestment process faced challenges due to regulatory restrictions imposed by the Reserve Bank of India on foreign ownership in tobacco firms. This limited the potential buyer pool for ITC shares, as acknowledged by BAT CEO Tadeu Marroco in December.
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