BAT sells 9% stake in ITC Hotels for Rs 3,856 cr

New Delhi: British American Tobacco Plc (BAT) on Friday sold a 9 per cent stake in ITC Hotels for Rs 3,856 crore through open market deals, with buyers including Abu Dhabi Investment Authority, Socié-té Générale and Morgan Stanley. BAT said the proceeds will help it move toward its 2–2.5x adjusted net debt-to-EBITDA leverage target by end-2026.

The block trade generated net proceeds of INR 38.2 bn (£315 million), and BAT now retains a 6.3 per cent stake in ITC Hotels. In total, 18.75 crore shares were sold by BAT’s affiliates—Tobacco Manufac-turers India, Myddleton Investment Company and Rothmans International Enterprises—at an average price of Rs 205.65 per share.

Nippon India Mutual Fund, HCL Capital, BNP Paribas Arbitrage and Vanguard Group were among the buyers. ITC Hotels’ stock closed 1 per cent lower at Rs 205.65 on the NSE.

BAT said the direct shareholding resulted from ITC Ltd’s hotel business demerger and is not strategic for the group. CEO Tadeu Marroco said the sale supports its 2026 leverage goals.

Founded in 1975, ITC Hotels now operates over 140 properties across 90 destinations and has been publicly listed since January 2025.