new delhi: Shares of ITC dropped over 3 per cent on Wednesday after British multinational BAT Plc trimmed its ownership in the conglomerate by divesting a 2.5 per cent stake for around Rs 12,927 crore (USD 1.51 billion) through a block deal.
The stock declined 3.18 per cent to settle at Rs 420.10 on the BSE. During the day, it lost 4.33 per cent to Rs 415.10.
At the NSE, it dropped 2.97 per cent to Rs 421.
The company’s market valuation declined by Rs 17,269.48 crore to Rs 5,25,718.17 crore.
The stock emerged as the biggest laggard among the BSE Sensex firms.
The BSE barometer declined 239.31 points or 0.29 per cent to settle at 81,312.32. The NSE Nifty dropped 73.75 points or 0.30 per cent to 24,752.45.
British American Tobacco (BAT), through its arm Tobacco Manufacturers (India) Ltd, sold the stake in Kolkata-based ITC, according to a revised term sheet.
Before the latest transaction, BAT through its affiliates -- Rothmans International Enterprises, Myddleton Investment Company and Tobacco Manufacturers (India) Ltd -- owned a combined 25.44 per cent stake in ITC Ltd.
Following the completion of the block trade, BAT will remain a significant shareholder of ITC, with less than 23 per cent stake in ITC.
As per the latest block deal, up to 31.3 crore equity shares of ITC were sold at a final price of Rs 413 per share.
Goldman Sachs (India) Securities Pvt Ltd and Citigroup Global Markets India are the placement agents for the transaction, sources said.
The total number of shares has been raised from the initial 290 million (29 crore shares) as mentioned in the earlier term sheet.
The sources said 31.3 crore shares amount to around 2.5 per cent stake in ITC, and the offer size, based on the final price, is pegged at USD 1.51 billion or about Rs 12,927 crore.
The shares sale executed through multiple tranches on the BSE and NSE under the bulk sale route.
The share sale is entirely secondary in nature, meaning that ITC will not receive any proceeds from the deal, and the stake is being sold solely by the Tobacco Manufacturers (India) Ltd. The seller and its affiliates will be subject to a lock-up period of six months
post-sale.