In a regulatory filing, GQG disclosed that it had acquired an additional 0.51% stake in ITC, taking its total holding to 5.47% of the company’s paid-up capital. Prior to this, GQG and persons acting in concert (PACs) held a 4.96% stake. The deal was executed on May 28 and settled on May 29.
GQG Partners LLC, led by Rajiv Jain, acted as the investment manager for the acquiring entities. The shares purchased are fully paid-up equity shares with a face value of Rs 1 each.
The acquisition comes shortly after BAT, ITC’s largest shareholder, offloaded a 2.5% stake for approximately Rs 12,900 crore via block deals. This reduced BAT’s holding in ITC from 25.4% to 22.9%. BAT said the proceeds from the sale would support its £1.1 billion share buyback programme for 2025.
This isn’t the first time BAT has pared its stake in ITC. In March 2023, the UK-based tobacco giant sold a 3.5% stake to institutional investors via block deals.
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ITC, a diversified conglomerate headquartered in Kolkata, operates across sectors such as FMCG, hotels, paperboards, packaging, and agribusiness. Its stock is widely held by both domestic and foreign institutional investors and is considered a core holding in many long-term portfolios.
With GQG’s latest purchase, market watchers believe institutional interest in ITC remains strong, even as legacy shareholders like BAT unlock value. Analysts suggest this increased participation could enhance liquidity and strengthen ITC’s positioning among global funds.
ITC share price target
According to Trendlyne, the average target price for ITC is Rs 501, implying a potential upside of nearly 19% from current levels. Among the 37 analysts tracking the stock, the consensus rating is ‘Strong Buy’.
ITC shares are down 8% year-to-date but have gained 62% over the past three years. The company’s current market capitalisation stands at Rs 5,24,779 crore.
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