ITC stock surges 9% amid block deal; BAT likely seller
British American Tobacco (BAT), ITC's largest shareholder, was reportedly looking to sell 43.7 crore shares, or 3.5% stake, in the company via a block deal, which would fetch ₹17,491 crore.
British American Tobacco (BAT), ITC's largest shareholder, was reportedly looking to sell 43.7 crore shares, or 3.5% stake, in the company via a block deal, which would fetch ₹17,491 crore.
Last month, British tobacco giant had said that it would pursue all opportunities to enhance balance sheet flexibility including regular review of its stake in ITC.
Shares of ITC drop 5% as British American Tobacco reviews its stake.
Hotels business was a stand-out contributor, followed by FMCG, while paperboard and agri remained under severe pressure.
Post analysts meet, Prabhudas Lilladher has maintained ‘Accumulate’ rating on ITC shares, while Emkay Global Financial and Jefferies have retained ‘Buy’ ratings.
ITC says stock limits on wheat, a ban on non-basmati rice exports and export duty on parboiled rice, further limited business opportunities for the agriculture business.
The tobacco-to-hotel conglomerate's revenue from operations stood at ₹17,705.08 crore.
During the quarter under review, the company’s standalone profit surged 17.6% year-on-year (YoY) to ₹4,902.74 crore as against ₹4,169.38 crore in the same period last year.
ITC will hold a stake of about 40% in the new entity and the balance shareholding of about 60% to be held directly by the company's shareholders
The FMCG major has joined the league of biggies such as RIL, TCS, HDFC Bank, ICICI Bank, HUL, and Infosys to become the seventh-most valued firm on BSE.