British American Tobacco (BAT) has carried out a significant stake sale in ITC Hotels, offloading around 187.5 million shares through a large block deal. The transaction raised close to ₹3,820 crore, valuing the shares at a floor price of ₹205.60 each.
With this sale, BAT’s shareholding in ITC Hotels drops sharply, from about 15.3% to nearly 6.3%. The sale was executed through an accelerated book-build process and attracted strong market interest, allowing BAT to complete the divestment quickly.
The stake sale forms part of BAT’s ongoing financial strategy. The company has stated that its direct investment in ITC Hotels is not strategically essential, especially after the hotel arm was separated from the parent company ITC Limited and listed as an independent entity earlier this year. BAT received its holding in ITC Hotels as part of that demerger.
The proceeds from the block deal will be used to reduce debt and help the company reach its targeted leverage ratio by 2026. BAT has been actively restructuring its balance sheet and has indicated that lowering borrowings is a priority.
The news created some pressure on ITC Hotels’ stock, which briefly dipped as the market absorbed the large supply of shares. Analysts, however, expect the overhang to ease now that a major stakeholder has completed its planned sale. Many also point to the company’s strong expansion pipeline and favourable hospitality sector trends as support for future performance.
The latest divestment also gives ITC Hotels more room to move forward with its long-term plans under a more diversified shareholding structure, while BAT streamlines its global portfolio and focuses on strengthening its core business.
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