ITC There is a large block deal of shares. According to the news, the British multinational company BAT PLC has sold 2.5% stake in ITC for Rs 12,927 crore ($ 1.51 billion). According to the terms of the deal, the British American Tobacco (BAT) sold a stake in ITC in Kolkata through its branch Tobacco Manufacturers (India) Limited. BAT had a joint 25.44% stake in ITC Limited through its colleagues Rotomans International Enterprises, Midalton Investment Company and Tobacco Manufacturers (India) Limited. After this block deal, BAT’s stake in ITC has come down to less than 23%. The deal indicates a change in the company’s strategic share.
Block deal at a price of Rs 413 per share
31.3 crore shares of ITC were sold at Rs 413 per share. This is about 4.8 percent lower than 433.90 rupees on the National Stock Exchange (NSE) on Tuesday’s closing price of 433.90. Sources said that Goldman Sachs (India) Securities Private Limited and Citigroup Global Markets India are planning agents of this transaction. The total number of shares has been extended from the initial 29 crore shares, as stated in the first ‘Term Sheet’. Sources said that 31.3 crore shares are equal to about 2.5 percent stake in the company. The total size of the deal is estimated at Rs 12,927 crore or (US $ 1.51 billion).
Sales through block deal
The shares were sold through a block deal on BSE and NSE. The ITC will not get any income from the deal and the stake is being completely sold by Tobacco Manufacturers (India) Limited. The seller and his associates will be subject to a six-month ‘lock-up’ period after sales. The BAT PLC on Tuesday reported to the London stock market that its full -owned subsidiary Tobacco Manufacturers (India) Limited, ITC Limited, intended to sell some of their stakes in ITC Limited. This transaction will provide financial strength to BAT, as this change will meet his commitment to debt refinement and permanent shareholder ‘returns’.
Investment from 1900s
The BAT’s initial investment in ITC was early in the early 1900s and the two companies have long -term relations. “ITC is a valuable ally of BAT, which is likely to grow in long -term development where BAT benefits from access to the world’s most populous market.” Earlier, British multinational company BAT PLC sold 3.5 percent stake in ITC Limited for Rs 17,485 crore in March 2024. Since this news, ITC shares have declined significantly.
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