Mumbai: A series of block deals took place on Tuesday on ITC Ltd’s stock in which around 242.50 million shares, or a 2% stake in the company, changed hands, Bloomberg reported. Details of buyers and sellers were not available.
Shares of ITC opened sharply higher after CNBC TV18 reported that the government had confirmed the sale of a stake in ITC held by the Specified Undertaking of Unit Trust of India (SUUTI) via a block deal. The aggregate value of the deal was estimated at around Rs6,800 crore at current market price.
According to ET Now, Life Insurance Corp. of India (LIC) picked up the entire stake. As of the December quarter, SUUTI held a 11.12% stake in ITC, according to BSE shareholding data.
Other listed stocks in which SUUTI holds a stake are Larsen and Toubro Ltd and Axis Bank Ltd, which were trading marginally lower at 0.6% and 0.5%, respectively. SUUTI holds a 6.69% stake in L&T and a 12.02% stake in Axis Bank.
In intra-day trading, ITC shares gained as much as 5.6% to hit a high of Rs291.95 a share. At 9.41am, the stock was trading at Rs282.30 on the BSE, up 2.13% from its previous close, while India’s benchmark Sensex index fell 0.2% to 28,383.15 points.
ITC shares ended 0.25% up at Rs277.10 while the Sensex closed 0.37% lower at 28,335.16 points.
With this rally, the market capitalization of the cigarette maker has become the second most valuable company in India.The current market capitalization of ITC is Rs3.37 trillion. Tata Consultancy Services Ltd is India’s most valuable company with a market capitalization of Rs4.41 trillion. Reliance Industries and HDFC Bank Ltd have a market capitalization of Rs3.35 trillion each.