Shares of the country’s leading FCG and cigarette manufacturer ITC saw a sharp decline this morning and fell by 5 per cent. This decline in ITC shares came after the news came out claiming that British American Tobacco (BAT) is going to reduce its stake in the company. After this, today ITC shares opened with a decline at Rs 417 and touched a low of Rs 413. Currently, ITC shares are trading around Rs 421.
Block Deal Details of ITC Stock
In the block deal window, about 32 crore shares or 2.56 percent of ITC’s equity were exchanged, with a total value of Rs 13,334 crore. The deal of shares was done at a price of Rs 417 per share, which reflects a discount of 4 percent from the previous closing price.
British American Tobacco Reduces Stake Again
Earlier, media reports had said that BAT, the largest stakeholder in ITC, would sell its 2.3 percent stake in the company to institutional investors through a block deal. Earlier, British American Tobacco had sold 3.5 percent stake for Rs 16,690 crore through a block deal last year.
Should You Buy ITC Shares Now?
Even after this sudden fall in ITC shares, market experts are bullish about the shares of this company. Deven Choksi, founder of Choksi Finserv, said, “ITC’s growth story as an FMCG company is strong, and the demerger in the FMCG business will be beneficial for the company.” Deven Choksi said that further decline in ITC shares is very limited and the shares can see a jump of 20 to 25 percent from the current levels. He said that new investment can be made in ITC shares.
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