New Delhi: Shares of conglomerate ITC dropped nearly 5 per cent after British multinational BAT Plc trimmed its stake in the firm by 2.3 per cent through a block deal worth Rs 11,613 crore (USD 1.36 billion).The stock tanked 4.33 per cent to Rs 415.10 on the BSE.
At the NSE, it tumbled 4.81 per cent to Rs 413.The stock emerged as the biggest laggard among the BSE Sensex firms.ITC dragged the markets lower in morning trade. The 30-share BSE benchmark gauge Sensex traded 122.44 points lower at 81,417.60. The NSE Nifty quoted 40.70 points down 24,786.70.BAT Plc on Wednesday trimmed its stake in ITC by 2.3 per cent through a block deal worth Rs 11,613 crore (USD 1.36 billion), according to the deal terms accessed by PTI.
British American Tobacco (BAT), through its arm Tobacco Manufacturers (India) Ltd, sold the stake in ITC."BAT's decision to sell 2.3 per cent stake in ITC will keep the stock subdued," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.Before the latest transaction, BAT through its affiliates -- Rothmans International Enterprises, Myddleton Investment Company and Tobacco Manufacturers (India) Ltd -- owned a combined 25.44 per cent stake in ITC Ltd.
As per the block deal, up to 29 crore equity shares of ITC were sold at a floor price of Rs 400 per share. This represents a discount of about 7.8 per cent to ITC's closing price of Rs 433.90 on the NSE on Tuesday, sources said.
The sources said 29 crore shares amount to around a 2.3 per cent stake in the company. At the offer floor price, the total size of the transaction is pegged at Rs 11,613 crore or (USD 1.36 billion).
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