ITC Shares Plunge 5% After BAT Stake Sale - Business News

ITC shares experienced a significant downturn, falling nearly 5% following the sale of a 2.3% stake by British American Tobacco (BAT). The transaction, executed through a block deal, was valued at Rs 11,613 crore, raising investor concerns over the immediate impact on ITC’s market position. This strategic divestment by BAT, a long-term stakeholder, has caused ripples in the stock market, prompting analysts to reassess the company's short-term valuation. The move comes amid a global trend where major corporations are realigning their investment portfolios to focus on core business areas. BAT, which has held a stake in ITC for several years, appears to be recalibrating its strategy, possibly to bolster liquidity or fund other ventures. This decision has sparked speculation about ITC’s future trajectory, although the company remains a dominant player in the Indian market, with diverse interests spanning FMCG, hospitality, and agriculture. Market experts suggest that while the immediate reaction has been negative, ITC's strong fundamentals and robust business model could help it recover swiftly. Investors are advised to keep a close watch on ITC's upcoming quarterly results, which may offer deeper insights into the company's performance and potential growth avenues. Despite the current setback, ITC's diversified portfolio may provide a buffer against volatility, maintaining its appeal among long-term investors.

— Authored by Next24 Live