ITC tanks 5% as BAT mulls stake sale
Shares of ITC drop 5% as British American Tobacco reviews its stake.
Shares of ITC drop 5% as British American Tobacco reviews its stake.
ITC Hotels' demerger is expected to be completed by Sep'24, while the listing of the new entity is expected to take place in Nov'24.
The board of ITC also approved ITC Hotels' demerger in a swap ratio of 1:10, which is likely to be completed over the next 15 months.
Shareholders seemed to be unhappy with demerger ratio as they would not get one share against each share they are holding in ITC.
The FMCG major has joined the league of biggies such as RIL, TCS, HDFC Bank, ICICI Bank, HUL, and Infosys to become the seventh-most valued firm on BSE.
The ITC board recommended a final dividend of ₹6.75 and a special dividend of ₹2.75 per equity share.
The FMCG heavyweight became the 11th BSE-listed entity to touch ₹5 lakh crore mark after shares scaled a new all-time high of ₹402.60 in intraday trade.
The cigarette-to-hotel conglomerate is expected to report double-digit growth in its net profit for Q4 FY23, aided by cigarettes and FMCG businesses.
The share price of ITC jumped as much as 11% from day’s low to hit a new all-time high of ₹365.65 on the BSE, driven by strong volume.
ITC share price has risen 62% in the calendar year 2022, compared to 1.4% rise in the BSE benchmark Sensex.