BAT entities likely to pare stake worth ₹2,998 Crore in ITC Hotels

5 Dec 2025 , 08:59 AM

British American Tobacco (BAT)-linked shareholders are planning to sell up to 7% stake in hospitality major ITC Hotels. The transaction will take place through a block deal worth ₹2,998 Crore. The company has fixed the floor price for the transaction at ₹205.65 per share. This is a discount of about 1% to the previous closing price, the sources added.

Among the selling entities are Tobacco Manufacturers (India) Limited, Myddleton Investment Company Limited and Rothmans International Enterprises Limited. These shareholders are part of the BAT Group. It currently holds about 15.30% stake in ITC Hotels.

The transaction will have a 60-day lock-in period for the sellers and their affiliates. The company said that it plans to use the proceeds of this issue to progress within the target 2-2.5x adjusted net debt/adjusted EBITDA leverage corridor (adjusted for Canada) by the end of 2026.

In its results for the quarter ended September 2025, the business reported a 74% year-on-year growth in its net profit at ₹133 Crore. In the previous corresponding period, the business posted a net profit of ₹77 Crore. Revenue for the quarter came in at ₹839.50 Crore. This was a growth of 8% on a year-on-year basis against ₹778 Crore in the previous corresponding period.

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