british American Tobacco (BAT) has sold its 2.57 percent stake in ITC, after which ITC shares saw a decline on Wednesday. BAT sold its stake in ITC for Rs 11613 crore. Today, ITC shares have registered a decline of about 5 percent. With this, the stock slipped 4.33 percent to Rs 415.10 on BSE. It has fallen 4.81 percent to Rs 413 on NSE. Among the BSE Sensex companies, ITC shares saw the biggest decline.
The effect of this decline was also seen on the market
The effect of the decline in ITC shares in the morning trade was also seen on the market. The 30-share BSE benchmark index Sensex closed 122.44 points lower at 81,417.60. At the same time, the NSE Nifty slipped 40.70 points to close at 24,786.70. According to revised documents related to the terms of the deal, which are with news agency PTI, british American Tobacco (BAT) on wednesday reduced its stake in ITC by 2.3 percent through a block deal worth Rs 11,613 crore (US$ 1.36 billion).
Earlier, BAT had this much stake in ITC
british American Tobacco (BAT) has sold its stake in ITC through its branch Tobacco Manufacturers (India) Limited. VK Vijayakumar, chief investment strategist at Geojit Investments Ltd, said, "BAT's decision to sell 2.3% stake in ITC will keep the stock weak." Prior to the deal, BAT held 25.44% stake in ITC through its other subsidiaries such as Rothmans international Enterprises, Mydleton Investment Company and Tobacco Manufacturers (India) Ltd.
As per the block deal, 29 crore equity shares of ITC were sold at a floor price of Rs 400 per share. This is about 7.8% lower than ITC's closing price of Rs 433.90 on the NSE on Tuesday, sources said. 29 crore shares are equivalent to about 2.3% stake in the company..jpg)
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