ITC share price: Following rumors that British American Tobacco Plc was considering selling a portion of its ownership in the Indian partner as soon as this week, the price of ITC shares dropped by more than 2% in early trading on Monday.
On the BSE, ITC shares dropped as much as 2.46% to ₹399.30 a share. After more than doubling during the previous two years, the price of ITC shares has now decreased by more than 13% in 2024.
According to Bloomberg News, which cited sources, BAT, which is listed in London, has been in discussions with Bank of America Corp. and Citigroup Inc. over the possible sale of ITC shares for between $2 billion and $3 billion through block trades.
BAT acknowledged in a statement that it was considering selling a “small part” of its ITC stake through an on-market block trade. It stated that neither the terms of any possible transaction nor the likelihood of the deal moving forward are certain.
Based on statistics provided by Bloomberg, BAT currently owns a 29% share in the Indian cigarette-to-hotel giant ITC.
Meanwhile, a sizable trade on March 11 involved almost 12 million ITC equity shares, or 0.09% of the total. The purchasers’ and sellers’ identities are kept a secret. – ITC share price
BAT declared in February that it was “actively working” to sell off its approximately 29% ownership in ITC.
These transactions typically involve a price reduction from the going rate. According to persons with knowledge of the situation, the Bloomberg story stated that specifics of the deal could still alter and that the offering’s launch could extend into next week, contingent on market circumstances.
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Following the Bloomberg News article, BAT shares increased, closing Monday in London up 1.4%. BAT’s stock has dropped 23 percent over the last full year.
ITC’s shares were down 2.33% at ₹399.85 a share on the BSE at 9:30 a.m.
