The stake sale in ITC is good news also because BAT is now unlikely to sell more shares in near future for it doesn t want its shareholding in ITC to fall below 25%. BAT s ownership in ITC has now fallen to 25.5% from 29% earlier.
The S&P BSE Sensex plunged more than 900 points while the Nifty50 failed to hold on to 22,000 towards the close of the session. Sectorally, selling was seen in utilities, power, public sector, metals and telecom stocks.
The big sale by BAT turned out to be a blessing in disguise rather than a nightmare for shareholders of ITC, as the stock shot up nearly 9% intraday. The stock ended 4.5% higher on the BSE at Rs 422.40. This indicates the strong institutional interest in the stock given the upbeat growth outlook.
Debt-ridden British American Tobacco (BAT) plans to sell a 3.5% stake in ITC Ltd for $2.1 billion, reducing its shareholding to 25.5%. BAT s subsidiary will facilitate the stake sale through an accelerated bookbuild process, using the proceeds to buy back BAT shares and maintain strategic influence in ITC. According to the term sheet of the block deal, BAT is offering 43,68,51,457 shares of ITC in a price range of Rs 384-400.25.