No plan to sell SUUTI stake in ITC as of now: Govt
The clarification comes after as per the regulatory filling which was filled on November 9, it was announced that SU-UTI will sell 46.5 million shares, or a 1.55 percent stake of the total paid-up equity share capital of Axis Bank as of September 30, 2022, on November 10 and 11.
The Government is not planning to sell its stake under the Specified Undertaking of the Unit Trust of India (SUUTI) in ITC as of now, sources told CNBC-TV18. In 2020 the government had decided to sell its remaining stake in companies held under the SUUTI.
SUUTI last pared stake in ITC in February 2017, when two percent equity was sold at a price of Rs 291.95 per share. The number of shares that SUUTI has held in ITC has remained consistent over the last four years.
As of September 2022, SUUTI holds 7.87 percent stake in ITC, which at the company's current market price, would be valued at Rs 34,140 crore.
Current shareholders also include British American Tobacco or BAT, which holds 29.2 percent stake in the company through Rothmans International Enterprises, Myddleton Investment Co. and Tobacco Manufacturers (India) Ltd.
Insurance companies also hold 20.7 percent stake in ITC, most of which (15.6 percent) is held by the Life Insurance Corporation of India (LIC). Other insurance companies that are stakeholders include The Oriental Insurance Co. Ltd., The New India Assurance Co. Ltd., and General Insurance Corporation of India.
Domestic Mutual Funds also own a 9.6 percent stake in ITC.
Shares of ITC have gained 65 percent this year so far, making it the company's best annual performance in many years. The stock is trading near its record high of Rs 367 which it scaled in July 2017. The stock closed at Rs 356, 1.30 percent lower.
First Published: Nov 10, 2022 4:38 PM IST
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