ITC's largest shareholder BAT is working towards monetising some of its stake
BAT had earlier highlighted to analysts in December last year that they are open to paring stake in ITC.
BAT, the largest shareholder in India's cigarette-to-hotels conglomerate ITC Ltd., is working towards selling some of its stake in the company, it said in an earnings release.
"We have been actively working for some time on completing the regulatory process required to give us the flexibility to monetise some of our shareholding and will update you at the earliest opportunity," the BAT release said.
BAT further said that they have significant shareholding in ITC and it offers an opportunity to release and reallocate some capital.
"In addition, we continue to pursue all opportunities to enhance balance sheet flexibility and, as part of this, we regularly review our stake in ITC,"
BAT has been a shareholder in ITC in some or the other way since the early 1900s and has been subject to numerous share capital changes and regulatory restrictions.
Based on the current shareholding pattern, BAT has a 29.03% stake in ITC, which as per the current price, is valued at nearly ₹1.5 lakh crore.
BAT had earlier highlighted to analysts in December last year that they are open to paring stake in ITC.
BAT's current market capitalisation is at £54.5 billion or ₹5.72 lakh crore. Its stake in ITC is worth £14.6 billion, which is almost 30% of its market capitalisation. Two years prior, that share stood at 22%. Over the last two years, while shares of BAT have declined 27%, those of ITC have risen 76% year-on-year.
Shares of ITC are trading at the day's low, down 5% at ₹410.
(Edited by : Hormaz Fatakia)
First Published: Feb 8, 2024 1:03 PM IST
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