BAT sells ITC stake for Rs 17,400 crore; over 30 institutional investors pick up shares

MUMBAI - British American Tobacco Plc (BAT) on Wednesday sold a 3.5% stake in ITC Ltd through the open market at Rs 400.25 a share, aggregating to approximately Rs 17,485 crore..

BAT sold 43,68,51,457 shares of the cigarette-to-hotels conglomerate to institutional investors through an accelerated bookbuild process...

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..

As indicated in our announcement, BAT intends to use the net proceeds to buy back BAT shares over a period ending December 2025, starting with 700 million in 2024, BAT said...

This will enable the allocation of operating cash flows to fund investment and also deleverage the balance sheet to reach an adjusted net debt-to-EBITDA ratio of 2-2.5x, while also maintaining a progressive dividend and supporting a sustainable share buyback, BAT said..

You might be interested in