Key Points
The key event of London's British American Tobacco (BAT) stake sale, which was initially perceived to be a key supply hangover for ITC, ended up pushing the Nifty stock 8.6% higher leading to a windfall gain of about Rs 43,000 crore on day's high...
When BAT went out on Dalal Street to sell a 3.5% stake, 43.68 crore shares of ITC were absorbed by institutional investors who shelled out about Rs 17,500 crore in no time...
HSBC upgraded ITC to buy with a target price of Rs 480 saying the cigarette business is at an attractive valuation and BAT's stake sale is a buying opportunity...
Goldman Sachs has also maintained its buy rating on ITC with a target price of Rs 480 on the back of improving FMCG profitability and steady recovery in cigarette profit.. Dalal Street veteran Sanjiv Bhasin said if ITC decides to demerge its cigarette business as well, it would be the real unbundling for investors...
But at Rs 400 or Rs 385-400, wherever you get an opportunity in the short-term, I think you could see at least a 10% upside," Bhasin said.. ITC shares had formed a near-term top around Rs 500 which happened just before the announcement of the demerger of the hotel business into a new entity in August 2023...
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BAT sells 3.5% stake in ITC via Rs 17,500-crore block deal
13, Mar, 24British American Tobacco sold a 3.5% stake in ITC, reducing its shareholding. Proceeds will be used for share buyback. ITC's stock price rose on the news. Goldman Sachs maintains buy rating, while CLSA upgrades ITC to buy.