British American Tobacco (BAT), one of the world’s largest tobacco companies, has launched a block trade worth ₹11,613 crore to sell up to 2.3% of its stake in ITC Ltd, according to deal terms seen by CNBC-TV18.

The block deal has been priced at ₹400 per share, representing a discount of neraly 8% to ITC’s closing price on Tuesday. Citigroup and Goldman Sachs are acting as joint brokers for the transaction.

This move follows BAT’s previous divestment in March 2024, when it sold a 3.5% stake in ITC for about $2 billion, marking India’s third-largest block deal at the time. That transaction involved 43.6 crore shares sold at a price range of ₹384 to ₹400.25 per share, with Citi and Bank of America as brokers. The strong demand for ITC shares in that deal, with the final price settling at the higher end of ₹400.4, underscored robust investor appetite.

ITC, a diversified conglomerate with interests in cigarettes, hotels, and fast-moving consumer goods, reported a multifold increase in net profit to ₹19,727 crore for the fourth quarter, driven by exceptional gains from discontinued operations.

BAT, a London-listed tobacco giant with brands like Dunhill, Lucky Strike, and Rothmans, sold 654 billion cigarettes in 2023. The company has been navigating challenges, including tax headwinds in Bangladesh and Australia, which contributed to a modest 1% revenue growth forecast for 2024.