ITC share price surges 6% post large block deal, becomes top Nifty gainer

ITC shares experienced a significant surge, rising over 8%, following British American Tobacco’s (BAT) sale of a 3.5% stake in the company through a block deal. The transaction, executed at an average price of Rs 400.40 per share, amounted to a total block deal size of Rs 17,491 crore.

At 9:46 am, the shares were trading 5.70% higher at Rs 427.50.


BAT, the largest shareholder in ITC, divested approximately 43.7 crore shares at an average price of Rs 400, marking a marginal discount of 0.01% compared to the previous session’s closing price of Rs 404.45.

The British cigarette maker had announced its intention to sell up to 43.69 crore ITC shares through accelerated book building, with a price range of Rs 384 to Rs 400.25 per share, as reported by CNBC Awaaz on March 12.

According to sources cited by CNBC Awaaz, Capital International or GIC Singapore are potential buyers of the stake in ITC. Moreover, domestic funds such as ICICI Prudential MF and Aditya Birla Mutual Fund have expressed significant interest in the block deal. Other long-only and insurance funds have also shown interest in acquiring shares.

This sale will reduce BAT’s stake in ITC, its single-largest shareholder, to approximately 25.5% from about 29%. However, BAT will be required to wait for 180 days before considering further reduction of its stake in the company.