British American Tobacco sells 2.3 pc stake in ITC for Rs 11,613 crore
British American Tobacco (BAT), through its arm Tobacco Manufacturers (India) Ltd, sold the stake in Kolkata-based ITC.
After the stake sale, shares of ITC slipped 1.46 per cent to trade at Rs 419.85 apiece on the NSE.
New Delhi, May 28 (PTI) British multinational BAT Plc on Wednesday trimmed its stake in conglomerate ITC by 2.3 per cent through a block deal worth Rs 11,613 crore (USD 1.36 billion), according to the deal terms accessed by PTI.
Before the latest transaction, BAT through its affiliates — Rothmans International Enterprises, Myddleton Investment Company and Tobacco Manufacturers (India) Ltd — owned a combined 25.44 per cent stake in ITC Ltd.
As per the block deal, up to 29 crore equity shares of ITC were sold at a floor price of Rs 400 per share. This represents a discount of about 7.8 per cent to ITC's closing price of Rs 433.90 on the National Stock Exchange (NSE) on Tuesday, sources said.
Goldman Sachs (India) Securities Pvt Ltd and Citigroup Global Markets India are the placement agents for the transaction, they added.
The sources said 29 crore shares amount to around a 2.3 per cent stake in the company. At the offer floor price, the total size of the transaction is pegged at Rs 11,613 crore or (USD 1.36 billion).
The shares sale executed through multiple tranches on the BSE and NSE under the bulk sale route. The share sale is entirely secondary in nature, meaning that ITC will not receive any proceeds from the deal, and the stake is being sold solely by the Tobacco Manufacturers (India) Ltd. The seller and its affiliates will be subject to a lock-up period of six months post-sale.
In a regulatory filing on the London Stock Exchange, BAT plc on Tuesday announced that its wholly-owned subsidiary Tobacco Manufacturers (India) Ltd intends to sell 2.3 per cent of the issued ordinary share capital in ITC Ltd.
The transaction will provide BAT with increased financial flexibility as it delivers on its commitment to invest in transformation, deleverage and sustainable shareholder returns.
BAT's initial investment in ITC dates back to the early 1900s, and the two companies have a longstanding, mutually beneficial relationship. As one of India's leading FMCG enterprises, ITC has delivered significant value for its shareholders.
Following completion of the block trade, BAT will remain a significant shareholder of ITC, with a 23.1 per cent holding in FMCG-to-hotel conglomerate ITC, it added.
'ITC is a valued associate of BAT in an attractive geography with long-term growth potential where BAT benefits from exposure to the world's most populous market.
'Whilst this transaction supports delivery on our commitments to BAT shareholders, we continue to view ITC as a core strategic component of our global footprint as we partner on business opportunities in India. I am confident that ITC, under the stewardship of its current management, will continue to create further value for its shareholders,' BAT's Chief Executive Tadeu Marroco said.
In March 2024, British multinational BAT Plc on Wednesday sold a 3.5 per cent stake in ITC Ltd for Rs 17,485 crore.
BAT is in the multi-category consumer goods business. Its strategic portfolio comprises global cigarette brands and a growing range of nicotine and smokeless tobacco products, including vapour brand Vuse; heated product brand 'glo' and Velo, a modern oral (nicotine pouch) brand. PTI HG DR
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
an hour ago
- Indian Express
Chandigarh: Senior IRS officer held in `45 lakh bribery case
Hours after their arrest, a Special CBI Court in Chandigarh on Sunday remanded IRS officer Amit Kumar Singal and his associate Harsh Kotak in 14-day judicial custody in a bribery case involving `45 lakh. A 2007-batch officer, Singal is currently posted as Additional Director General at the Directorate of Tax Payers Services. The CBI told the court that Singal and Kotak had allegedly demanded Rs 45 lakh from pizza chain owner and businessman Sanam Kapoor. While Kotak was arrested Saturday, Singal was taken into custody from his Delhi residence Sunday after the CBI obtained necessary authorisation. In its remand application, the CBI submitted that Singal acknowledged the `45 lakh bribe demand in a phone call with Kapoor and later accepted `25 lakh through Kotak. CBI said the bribe was sought in exchange for favourable treatment after Kapoor allegedly received a retaliatory tax notice in February 2025.
Deccan Herald
an hour ago
- Deccan Herald
Proposed RBI rules to hurt gold loans in rural & semi-urban India
Most recently, the Finance Ministry recommended that the RBI exempt small-ticket borrowers (below Rs 2 lakh) from the stricter guidelines, and give time till January 1, 2026 before their implementation.
India Gazette
an hour ago
- India Gazette
Lavender gave small J&K town of Bhaderwah national identity, role in India's economic growth: Jitendra Singh
New Delhi [India], June 1 (ANI): Union Minister Dr Jitendra Singh praised the Agri-Startup model of Lavender farming as a transformative force that has rewritten the narrative of entrepreneurship in remote and hilly terrains, saying that Lavender has given the small J&K town of Bhaderwah a national identity and also a national role in India's economic growth. 'Bhaderwah, once a quiet hilly town, is now a beacon of India's rural startup revolution. Lavender has not just added fragrance to these mountains--it has added identity, income, and inspiration,' said Singh while inaugurating 2-day Lavender festival 2025 organized by CSIR- IIIM Jammu in Bhaderwah town of Jammu. 'This single mission has answered multiple challenges,'Jitendra Singh said, 'It busted the myth that StartUps are limited to IT or require foreign degrees. Our youth in Jammu & Kashmir, in collaboration with CSIR-IIIM, have shown that passion, perseverance, and learning can build sustainable ventures rooted in agriculture.' He proudly shared that young entrepreneurs in Bhaderwah are earning an average of Rs 65 lakhs annually through lavender cultivation and value-added products, motivating many others to leave conventional jobs and pursue farming as a lucrative business opportunity, according to the Ministry of Science & Technology. Jitendra Singh credited Prime Minister Narendra Modi for introducing Bhaderwah and the Purple Revolution to the national stage. 'When the Prime Minister dedicated nearly ten minutes in his 'Mann Ki Baat' to talk about this Lavender mission in detail, it gave the best possible global introduction to Bhaderwah--one that we couldn't have imagined,' Singh said. The Minister emphasised that it was PM Modi's vision of StartUp India and StandUp India, announced from the ramparts of the Red Fort, that ignited the entrepreneurial spirit in regions that previously needed long explanations to justify their existence on the developmental map. Singh revealed that there are currently 50 distillation units operational in Bhaderwah, with lavender-derived products being supplied to markets in Maharashtra and other states. The model has not only attracted attention from neighboring states like Himachal Pradesh and Uttarakhand, but also from the North-Eastern states, whose representatives were present at the festival to gain first-hand insights. 'This is a new paradigm the world is witnessing - a rural, agriculture-based startup revolution that is both scalable and sustainable,' he remarked. Another myth that Jitendra Singh addressed was the misconception that StartUps are only for the young. He shared that a special exhibition featuring 60+ age group entrepreneurs will be showcased in the next edition of the festival. Drawing a broader economic context, Singh said, 'India has moved from the 5th largest to the 4th largest economy, and sectors like lavender cultivation will further fuel our rise. These unexplored areas, when empowered, will become pillars of value addition and employment generation.' He also addressed skepticism around India's economic resilience amid aggressive defence postures. 'Despite challenging times and operations like Sindoor, India's economy has not only remained buoyant but also grown. That is a fitting reply to skeptics,' he asserted. Concluding his address, Singh praised Dr Zabeer and the CSIR-IIIM team for organizing an unprecedented event in Bhaderwah that drew visitors from all over India. He invited everyone to visit the lavender fields over the next 10-15 days during peak bloom and hear directly from the entrepreneurs themselves. (ANI)
