Shares of ITC Hotels Ltd were trading 1.51% lower at Rs 202.35 on Tuesday, Dec 9, after a major stake sale by longstanding shareholder British American Tobacco (BAT) triggered profit-booking and short-term pressure on the stock.
BAT offloaded its entire 9% stake in ITC Hotels through an open-market transaction worth Rs 3,855.94 crore. The sale involved 18.75 crore shares at an average price of Rs 205.65 per share, executed through its three group entities — Tobacco Manufacturers India, Myddleton Investment Company, and Rothmans International Enterprises.
These entities sold approximately 12.33 crore, 4.86 crore, and 1.54 crore shares, respectively.
Large-scale stake sales often weigh on market sentiment, especially when executed in a single session, as they increase near-term supply and prompt investors to reassess valuations. Despite this selling pressure, the stake was entirely absorbed by marquee global and domestic investors.
On the buy side, HCL Capital, Nippon India Mutual Fund, Societe Generale, Morgan Stanley Asia (Singapore), Vanguard Group, BNP Paribas Arbitrage, and Abu Dhabi Investment Authority (ADIA) collectively acquired the full 18.75 crore shares, matching BAT’s exit price of Rs 205.65 per share.
ITC Hotels continues to focus on owning, operating, managing, and franchising hotels and resorts while delivering environmentally aligned, culturally rooted hospitality experiences. However, the large institutional offloading by BAT appears to have influenced the stock’s decline in early trade today.
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