BAT may begin phased stake sale in ITC Hotels: Sources
(BAT) is likely to begin a phased sale of its stake in
ITC Hotels
, following the hospitality company's demerger from
ITC Limited
earlier this year, sources told ET NOW. The sale could begin in the coming weeks, though the extent of the offloading remains unclear.
The move aligns with BAT's earlier stance that it does not intend to be a long-term shareholder in ITC Hotels. The company currently holds a 14.55% stake in the recently demerged entity.
The demerger of ITC Hotels from ITC Limited took effect on January 1, 2025, with January 6 set as the record date. Post-demerger, ITC retained a 40% stake in ITC Hotels.
Sources said BAT intends to use proceeds from the stake sale to deleverage its balance sheet. The company had made a similar move in May, offloading a 2.5% stake in ITC Limited for approximately $1.4 billion, at Rs 413 per share.
BAT CEO Tadeu Marroco had previously confirmed the company's lack of interest in holding onto its ITC Hotels stake, reinforcing expectations of a gradual exit.
Live Events
Also Read:
These 11 Nifty microcap stocks can rally 55-210% in the next 12 months
ITC Hotels reported a 19% year-on-year rise in consolidated net profit to Rs 257.85 crore for Q4 FY25, compared to Rs 216 crore a year earlier. Revenue from operations rose to Rs 1,060.62 crore from Rs 1,015.4 crore in the same period.
For the full financial year 2024-25, the company posted a consolidated net profit of Rs 637.64 crore and revenue of Rs 3,559.81 crore.
Also Read:
Swiggy, Radico Khaitan among 7 stocks on which brokerages initiated coverage, see up to 34% upside
On Friday (June 13),
ITC Hotels shares
declined 1.7% to close at Rs 213.9 on the BSE.
Also Read:
KEI Industries, DCB Bank among 10 small-cap stocks analysts expect to gain up to 75%
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
18 minutes ago
- Time of India
Local rare-earth production to take time, govt support needed for EV sector: Kinetic Green CEO
Sulajja Firodia Motwani, Founder and CEO of Kinetic Green , has called for government intervention in the rare-earth materials issue, stating that while the Indian electric vehicle (EV) sector has managed to cope in the short term, it will face significant challenges ahead, as "it's not easy to change your product design and supply chain." Kinetic Green founder emphasised that it could take at least two to three years for the players in the automobile sector to localise the supply chain or adopt alternative technologies. "It will impact the industry if it's not solved because it's not easy to change your product design and supply chain. The EV sector is scrambling somehow to manage for the short run. But I think there has to be a government-to-government solution very soon in the medium term. Because it will take two to three years to try to localise the supply chain or change the technology altogether. So I think it's important that this is resolved," Sulajja Firodia Motwsaid during the unveiling event of the company's electric Luxury Golf & Lifestyle Cart in partnership with Tonino Lamborghini SpA of Italy. She further added, "We faced a similar situation in COVID on semiconductors; if you remember, the government did follow through and resolve it. I'm hopeful that something will emerge from this." She added that until the issue is solved, the company is working on developing alternative technologies to mitigate the adverse impact of such restrictions arising from global geopolitical moves. "But in the meantime, we are finding alternatives so that the business can continue, but it's not ideal to do that, and also maybe not everybody can. So it (restrictions on rare-earth material by China) will impact the sector," she added. The central government has earmarked ₹1,345 crore to incentivise rare earth magnets production in India. For context, early this April, China announced a decision to implement export controls on certain rare earth-related items, pushing a supply shortage across the world, including India. Meanwhile, India is in touch with the Chinese side, seeking predictability in the supply of rare earth metals -- which had been put under the export controls regime by the Xi administration. China's overwhelming control of global rare earth processing - commanding over 90 per cent of the world's magnet production capacity - has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy China, there are only a few alternative suppliers of critical minerals. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings. Recently, Union Minister for Coal and Mines G Kishan Reddy said the central government is actively encouraging private companies to mine and explore critical minerals overseas and bring them back into the country to serve the needs of the domestic industry. Speaking on the incentives to the industry, Motwani said, "The government has to continue supporting the adoption of EVs. Once we come to, today we are at about 7-8 per cent EV. Once we come to 25-30 per cent EV, then we'll have critical mass on supply chain, on scale, and on ecosystem. "We have begun well, but we are far from done. The government must continue supporting the adoption of electric vehicles," she added. She further noted the resistance from traditional internal combustion engine (ICE) players who have vested interests in maintaining the status quo. "There is a large counterforce from existing ICE manufacturers who naturally want to protect their investments and may not wish to see EVs succeed. However, it's encouraging that the government remains focused. Schemes like EMPS and the PM-eBus Sewa, lower GST rates, ecosystem support, and a strong Make-in-India push should continue to drive demand and adoption," Kinetic Green founder asserted.
News18
27 minutes ago
- News18
THDC India raises Rs 600 cr via NCDs
Agency: PTI New Delhi, Jul 20 (PTI) State-owned THDC India raised Rs 600 crore through issuance of non-convertible debentures on private placement basis on July 18, a statement said. The issuance was at a coupon rate of 7.45 per cent with maturity of 10 years. Proceeds of the bonds will be utilized to partly meet debt requirements of ongoing and under construction projects including recoupment of expenditure already incurred and to refinance the existing loans. Sipan Kumar Garg, Director (Finance) and CFO said the bond issue had a base size of Rs 200 crore and a green shoe option of Rs 400 crore, aggregating to a total issue size of Rs 600 crore. THDC India is steadily expanding its portfolio across diverse energy portfolios, and the funds mobilized through this issuance will further strengthen the company's financial position and support its ongoing strategic projects, the statement said. The debt securities will be listed on the Wholesale Debt Market (WDM) Segment of BSE and NSE on July 23, it said. The company has so far issued a total of 13 series of bonds and has successfully raised Rs 10,442 crore from the corporate debt market. PTI ABI ANU Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
29 minutes ago
- News18
IDFC First Bank In Focus As RBI Clears Warburg's 9.99% Stake Investment
This development follows a similar clearance granted by the Competition Commission of India (CCI) on June 3 for the proposed investment. Currant Sea had sought the CCI's approval in April for the stake acquisition. The regulatory approvals come shortly after IDFC First Bank's shareholders voted against appointing a non-retiring board member from Currant Sea Investments. The proposal received only 64.1 percent support, falling short of the 75 percent approval required under corporate governance norms. Previously, Warburg Pincus and the Abu Dhabi Investment Authority (ADIA) had announced a joint investment commitment of Rs 7,500 crore in IDFC First Bank through compulsorily convertible preference shares. As part of this plan, IDFC First Bank will issue 81.26 crore preference shares to Currant Sea Investments and 43.71 crore shares to ADIA-backed Platinum Invictus, both priced at Rs 60 per share. The last trading price of IDFC First Bank is at Rs 73.07 as of July 18 on BSE. The stock's 52-week movement indicates a high of Rs 78.50 and a low of Rs 52.50. As of July 18, the m-cap of IDFC First Bank stood at Rs 53,596 crore. It is a constituent of BSE 200. The Board at its meeting held on April 26, 2025 had considered and recommended dividend for the Financial Year 2024-25. In this regard, kindly note that the record date for determining the eligibility of members entitled to receive the said dividend is Friday, July 11, 2025.
