British American Tobacco affiliates divest Rs 3,856 crore stake in ITC Hotels

British American Tobacco has reduced its exposure to ITC Hotels after three of its investment affiliates sold a combined 9 per cent stake in the company through open-market transactions worth Rs 3,856 crore.

According to disclosures to the Bombay Stock Exchange, Tobacco Manufacturers (India) Ltd (TMIL) divested 5.92 per cent, while Myddleton Investment Company Ltd (MICL) and Rothmans International Enterprises Ltd (RIEL) sold 2.33 per cent and 0.74 per cent, respectively.

The sales involved 18.75 crore encumbered shares previously held by BAT entities. Following the transactions, MICL and RIEL no longer hold voting rights in ITC Hotels, while TMIL retains a 6.28 per cent stake, equivalent to 13.07 crore shares.

The block sale drew strong institutional demand. HCL Capital, a subsidiary of Vama Sundari Investments (Delhi), emerged as the largest buyer, acquiring nearly 7 per cent of ITC Hotels — 14.57 crore shares — for Rs 2,998 crore at the same clearing price.

Six other global and domestic investors — Société Générale, Nippon India Mutual Fund, Morgan Stanley Asia Singapore, Vanguard Group, BNP Paribas Arbitrage, and the Abu Dhabi Investment Authority — collectively purchased 4.17 crore shares, representing 2 per cent, for Rs 858 crore.