ITC shares decline over 3%; mkt valuation drops by Rs 17,269 cr

New Delhi: Shares of ITC dropped over 3 per cent after British multinational BAT Plc trimmed its ownership in the conglomerate by divesting a 2.5 per cent stake for Rs 12,927 crore (USD 1.51 billion) through a block deal.

The stock declined 3.18 per cent to settle at Rs 420.10 on the BSE. During the day, it lost 4.33 per cent to Rs 415.10.

At the NSE, it dropped 2.97 per cent to Rs 421.

The company's market valuation declined by Rs 17,269.48 crore to Rs 5,25,718.17 crore.

The stock emerged as the biggest laggard among the BSE Sensex firms.

The BSE barometer declined 239.31 points or 0.29 per cent to settle at 81,312.32. The NSE Nifty dropped 73.75 points or 0.30 per cent to 24,752.45.

British American Tobacco (BAT), through its arm Tobacco Manufacturers (India) Ltd, sold the stake in Kolkata-based ITC, according to a revised term sheet accessed by news agency.

Before the latest transaction, BAT through its affiliates -- Rothmans International Enterprises, Myddleton Investment Company and Tobacco Manufacturers (India) Ltd -- owned a combined 25.44 per cent stake in ITC Ltd.

Following the completion of the block trade, BAT will remain a significant shareholder of ITC, with less than 23 per cent stake in ITC.

As per the latest block deal, up to 31.3 crore equity shares of ITC were sold at a final price of Rs 413 per share.