New Delhi, May 28 (PTI) British multinational bat PLC on Wednesday trimmed its stake in ITC by dividing a stake of 2.5 percent for Rs 12,941 crore through open market transactions.
After the stake sale, BAT’s shareholding FMCG has fallen by 22.94 percent in the major ITC, which was earlier 25.44 percent. The British firm, however, still remains an important shareholder of ITC.
According to data from the Bulk Deal available with NSE, Tobacco Manufacturer (India) Limited, a branch of British American Tobacco (BAT), launched a total of 31.30 crore equity shares, which represents a 2.5 percent stake in ITC.
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The stocks were sold for Rs 413.78 in the price limit of Rs 413.12 per share. The total transaction price was Rs 12,940.98 crore.
After sales stake, tobacco manufacturer (India) Limited in ITC increased to 17.81 percent before 20.31 percent.
Batting through its colleagues – Rothanman International Enterprises, Mildon Investment Company and Tobacco Manufacturers (India) Limited – March Limited have a joint 25.44 percent stake in ITC Limited at the end of March Quarter.
Details of buyers of ITC shares cannot be detected on the National Stock Exchange (NSE).
ITC shares fell by 1.19 percent at Rs 421 per piece on NSE.
In a regulatory filing at the London Stock Exchange, the British American Tobacco (Group) said on Wednesday that it has completed block trade of ordinary shares of 31.30 crore in ITC Limited to institutional investors through a quick book construction process.
Block trade share represents 2.5 percent of the ITC’s released simple share capital. This block moves up to Rs 12,100 crore from the trade amount, it said.
BAT said that the transaction would provide more financial flexibility to the Deen group as it reaches its commitment to invest behind changes, increasing and increases the shareholder returns.
Business will also be used to expand the current share buyback program of the group declared on March 18, 2024, which takes a total amount in 20025 to redeem the 200 million pounds of additional amount in 2025.
“The expansion will begin after the completion of the latest installment of the program declared on 29 April 2025 and is not expected to be completed from 31 December 2025,” BAT said.
BAT’s initial investment in ITC is in the early 1900s, and the two companies have a long, mutually beneficial relationship. As one of the major FMCG enterprises of India, ITC has given significant value to its shareholders.
“ITC is a valuable partner of the bat in an attractive geography with long -term growth capacity, where BAT benefits from exposure to the world’s most populous market.
“Whenever this transaction supports delivery on our commitments for shareholders, we see ITC as a main strategic component of our global footprint because we are partners on business opportunities in India. I am confident that ITC will continue to make more values for our shareholders, under the leadership of our current management,” Bat’s Chief Executive Officer will continue to make more values, “said Tadudau Moroko said.
In March 2024, BAT PLC sold 3.5 percent stake in ITC Limited for Rs 17,485 crore.
BAT is in the business of consumer goods of multi-class. Its strategic portfolio includes the global cigarette brand and a growing limit of nicotine and smoking tobacco products, including the vapor brand vuse; Hot product brand ‘glow’ and velo, a modern oral (nicotine pouch) brand. PTI hg MR
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