ITC Shares: Falls 4% as BAT likely offloads 2.3% stake for ₹11,600 cr block deal

ITC shares traded at ₹421.20, down 1.14 per cent or ₹4.85 from the previous close of ₹433.90 at 10.30 am, as British American Tobacco (BAT) announced plans to sell a 2.3 per cent stake in the Indian consumer goods giant through an ₹11,600 crore block deal. The stock had fallen as much as 4 per cent earlier in the session.

BAT is offering nearly 29 crore ITC shares at a floor price of ₹400 each, representing an 8 per cent discount to Tuesday’s closing price of ₹434.70. The transaction will be executed through an accelerated book-build process targeting institutional investors, with Citi and Goldman Sachs managing the sale.

This marks BAT’s second major stake reduction in ITC within 18 months. The company previously sold a 3.5 per cent stake for ₹16,700 crore in one of India’s largest block deals. Following this latest sale, BAT’s holding will decrease from 25.4 per cent to approximately 23.1 per cent, though it will remain ITC’s largest shareholder.

BAT stated the proceeds will help reduce debt and achieve its target leverage ratio of 2-2.5x adjusted net debt to EBITDA by 2026. The company also plans to boost its share buyback program by 200 million pounds to 1.1 billion pounds for 2025.

Despite the stake reduction, BAT CEO Tadeu Marroco reaffirmed confidence in ITC, calling it “a valued associate in an attractive geography” and maintaining it remains a core strategic component of BAT’s global portfolio.

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Published on May 28, 2025