In a significant development for India’s hospitality sector, British American Tobacco Plc (BAT) is set to divest shares worth nearly INR 3,000 crore in ITC Hotels Ltd. through block deals scheduled for Friday. According to the termsheet, the shares will be sold at a floor price of INR 205.65 in the secondary market.
BAT affiliates—Tobacco Manufacturers (India) Ltd., Myddleton Investment Co., and Rothmans International Enterprises Ltd.—plan to offload between 7% and 15.3% of ITC Hotels’ share capital via an accelerated bookbuild. The final stake sale size will be determined to optimise pricing, the company said in a regulatory filing.
BAT currently holds a 15.3% direct stake in ITC Hotels, an outcome of the hotel company’s demerger from ITC Ltd. earlier this year. The holding is valued at approximately INR 6,600 crore.
Calling the stake “non-strategic,” BAT CEO Tadeu Marroco stated that proceeds from the sale will support the company’s 2026 deleveraging roadmap, reinforcing BAT’s focus on restructuring and liquidity.
BAT also continues to hold 22.9% in ITC Ltd., which retains a 39.85% stake in ITC Hotels.
Shares of ITC Hotels closed flat at 207.75 on the BSE ahead of the announcement. The stock has gained 21% since its listing in January.
This move is expected to draw strong interest from long-term institutional investors, given the robust post-listing performance of ITC Hotels and the sector’s continued growth momentum in India.
