Despite the recent sale, BAT remains ITC’s largest shareholder. Photo credit: Brandysolomon73, CC4.0.
British American Tobacco (BAT) sold a US$1.5 billion stake in ITC Group at INR413 (US$4.95) per share, according to a term sheet reviewed by Reuters.
The company offloaded 313 million ITC shares—about 2.5% of the firm—surpassing its initial plan to sell up to 290 million shares, which would have totaled roughly US$1.4 billion.
The final sale price marked a 4.8% discount compared to ITC’s May 28 closing of INR433.90. ITC stock dropped nearly 3% to INR421.70 on May 29, becoming the biggest decliner on both the Nifty 50 and the FMCG index.
Despite the transaction, BAT remains ITC’s largest shareholder, according to LSEG data. Goldman Sachs and Citigroup managed the deal, the term sheet showed.
This marks India’s second major block trade of the week, following IndiGo co-founder Rakesh Gangwal’s US$1.36 billion sale of a 5.7% stake in the airline.
BAT announced it will boost its 2025 share buyback program by £200 million, bringing the total to £1.1 billion (US$1.49 billion), due to the proceeds from the sale. The company said the transaction will not affect its full-year guidance.
Last year, the London-listed tobacco firm sold 436.9 million shares—roughly 3.5% of ITC’s outstanding stock—for about US$2 billion, in what became India’s third-largest block deal on record.
In February, the company projected 1% annual revenue growth, citing tax-related pressures in key markets like Bangladesh and Australia.