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.
Hotels business was a stand-out contributor, followed by FMCG, while paperboard and agri remained under severe pressure.
Post analysts meet, Prabhudas Lilladher has maintained ‘Accumulate’ rating on ITC shares, while Emkay Global Financial and Jefferies have retained ‘Buy’ ratings.
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 FMCG major touched a new high of ₹443.85 intraday today on the back of a continued rise in share price for the last six sessions.
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 FMCG heavyweight hit a new record high of ₹401.95 during the session, breaching the previous high of ₹398.2 touched in intraday trade on April 11.
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.