ITC Block Deal | Stock falls after BAT sells shares worth nearly ₹14,000 crore

As many as 33.25 crore shares, or 2.57% equity, of ITC Ltd worth ₹13,863 crore changed hands at ₹417 per share in a block deal window on Wednesday, May 28.

On Tuesday, May 28, CNBC-TV18 reported, that British American Tobacco (BAT) launched a block deal worth over ₹11,500 crore to to sell up to 2.3% of its stake in ITC Ltd. for ₹400 per share.

Citigroup and Goldman Sachs are acting as joint brokers for the transaction, according to the deal terms seen by CNBC-TV18.

Currently, BAT holds 25.4% stake in the company. In March 2024, BAT sold 3.5% stake in ITC for around $2 billion. The transaction involved 43.6 crore shares that were sold at an average price of ₹400.4 per share.

In its 2024 annual report, BAT said it is important for the company to retain at least 25% stake in ITC.

ITC Ltd. currently has two members on the board as representatives of BAT.

The ITC stock is also trading ex-dividend on Wednesday, May 28.

ITC Ltd reported a net profit of ₹19,561.6 crore in the fourth quarter in comparison to ₹5,020 crore in the previous year. The rise was primarily driven by a one-off gain of ₹15,179.4 crore following the demerger of its hotels business. It was also higher than Street estimates of ₹4,960 crore.

Its standalone revenue too increased 9.4% to ₹17,248 crore from the previous year and surpassed Street estimates of ₹16,820 crore.

On the operational front, ITC's earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 2.5% to ₹5,986.3 crore in the March quarter from ₹5,841.5 crore in the same period of the previous fiscal. However, it was slightly below estimates of ₹6,100 crore.

Its EBITDA margin contracted to 34.7% from 37.1% in the year-ago period and also missed its forecast of 36.3%.

For the entire financial year 2025, ITC's net profit increased 68.9% to ₹35,052 crore from ₹20,751 crore in the previous year, while its revenue increased by 10.4% to ₹81,612.78 crore.

ITC's board has recommended a final dividend of ₹7.85 per share of ₹1 each for FY25, subject to shareholder approval at the company's 114th annual general meeting on July 25, 2025. The final dividend payment, if approved, will be made between July 28 and July 31, 2025. The record date for determining the eligibility for the final dividend is set for May 28, 2025.

Together with the interim dividend of ₹6.5 declared in February 2025, the total dividend payout for FY25 will amount to ₹14.35 per share.

ITC shares ended 1.85% lower at ₹434.7 apiece on Tuesday, May 27. The stock has declined 10.2% this year, so far.

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