ITC News in Hindi: British multinational company BAT PLC has sold its 2.5 percent stake in ITC for Rs 12,927 crore ($ 1.51 billion). Since this news, ITC shares have declined significantly. The company’s stock fell to about 5 per cent on Wednesday morning. However, it was later improved at around 12.30 pm and fell at 420.60 at around 12.30 pm.
The British American Tobacco (BAT) sold a stake in ITC in Kolkata through its branch Tobacco Manufacturers (India) Limited. BAT had a joint 25.44 percent stake in ITC Limited through its colleagues Rotomans International Enterprises, Midlon Investment Company and Tobacco Manufacturers (India) Limited. After this move, its stake has now come down by 23 percent.
31.3 crore shares of ITC were sold at a minimum price of Rs 413 per share. This is about 4.8 percent less than 433.90 rupees on the National Stock Exchange (NSE) on Tuesday’s closing price of ITC. The total number of shares has been extended from the initial 29 crore shares, as stated in the first ‘Term Sheet’. The total size of the transaction based on the minimum price is Rs 12,927 crore or (US $ 1.51 billion).
The stocks were sold in several stages under the wholesale sales route on BSE and NSE. The share sales are completely secondary nature, which means that ITC will not get any income from the deal and the share is being completely sold by Tobacco Manufacturers (India) Limited. The seller and his associates will be subject to a six-month ‘lock-up’ period after sales.
The BAT PLC on Tuesday reported to the London stock market that its full -owned subsidiary Tobacco Manufacturers (India) Limited, ITC Limited, intended to sell some of their stakes in ITC Limited. This transaction will provide financial strength to BAT, as this change will meet his commitment to debt refinement and permanent shareholder ‘returns’. The BAT’s initial investment in ITC was early in the early 1900s and the two companies have long -interestingly beneficial relations.
BAT Chief Executive Tadeu Marco said that ITC is a valuable partner of BAT in an attractive geographical location, which is likely to have long -term development where BAT benefits from access to the world’s most populous market. Earlier, British multinational company BAT PLC sold 3.5 percent stake in ITC Limited for Rs 17,485 crore in March 2024.
