ITC Share Price Falls Nearly 3% After Rs. 9,437 Crore Block Deal: What Investors Need To Know

ITC Share Price Today came under pressure on Thursday, October 8, after a large block deal involving around 36.66 crore shares was reported in the company's stock. The transaction, valued at approximately Rs. 9,437 crore, took place at an average price of around Rs. 257 per share.

At the opening bell, ITC shares were trading at Rs. 264.15, down 0.43%. The stock subsequently fell as much as 1.86% to Rs. 260.35 on the BSE. At the time of writing, ITC shares were trading at around Rs. 258.45, down 2.73%.

ITC Block Deal: 36.66 Crore Shares Change Hands

The block transaction involved approximately 36.66 crore ITC shares, equivalent to around 2.9% of the company's outstanding equity. Shares changed hands at around Rs. 257.35 apiece, taking the total value of the transaction to approximately Rs. 9,437 crore.

The identities of the buyers and sellers were not immediately available. ITC does not have any promoter shareholding, with its entire equity held by public shareholders.

Who Holds ITC Shares?

ITC's shareholder base includes several large institutional investors as well as retail shareholders.

At the end of the June quarter, Specified Undertaking of the Unit Trust of India (SUUTI) held a 7.78% stake in ITC. Mutual funds collectively held around 16.5%, while the Life Insurance Corporation of India (LIC) held approximately 16.3%.

Retail shareholders also have a big presence in the company. More than 40 lakh retail shareholders, classified as shareholders with authorised share capital of up to Rs. 2 lakh, collectively held around 12.5% of ITC at the end of the June quarter.

Among foreign institutional investors, Goldman Sachs Trust II - Goldman Sachs GQG Partners International Opportunities Fund held a 2.06% stake, while GQG Partners Emerging Markets Equity Fund held around 1.06%. ITC's September-quarter shareholding pattern is yet to be disclosed.

ITC Cigarette Prices Rise After Tax Changes

The cigarette price increase has been made due to changes to the taxation structure for tobacco products.

From February 1, cigarettes and other tobacco products moved to a 40% GST rate, along with a new additional excise-duty structure. Cigarette companies subsequently increased prices across several brands to offset the impact of higher taxes. ITC has implemented multiple rounds of price increases since then.