ITC Hotels Share Price Falls as Big Block Trades Hit the Market

ITC Hotels share price traded lower on Friday after a huge volume of shares changed hands on the NSE. The stock hit a low of ₹205.55 and was down 0.75% at around ₹206 on the BSE. In comparison, the Sensex was slightly up at 85,322.49.

The company’s market value stood at ₹43,196 crore. Its 52-week range is between ₹158 and ₹261.

BAT Likely Behind the Sell-Off

Reports suggest that British American Tobacco (BAT) increased the amount of stake it plans to sell in ITC Hotels. BAT was expected to sell anywhere between 7% and its entire 15.3% holding, with a floor price of ₹205.65 per share. The block deal size was roughly ₹2,998 crore.

BAT aims to use the proceeds to reduce its debt and meet its 2026 target of lowering leverage to 2–2.5 times adjusted earnings.

BAT’s CEO, Tadeu Marroco, said the company’s holding in ITC Hotels came from ITC’s demerger earlier in the year and is not a strategic asset for them.

Past Stake Sales

Last year, BAT sold part of its ITC stake for about $2 billion to fund a share buyback program. After the demerger, BAT owned 15.3% of ITC Hotels, while ITC Ltd. holds 39.85%.

About ITC Hotels

ITC Hotels is majority-owned by ITC Ltd., a major Indian cigarette manufacturer that also operates in packaged foods, personal care, hospitality, and packaging.

ITC Hotels Share Price Movement

ITC Hotels share price (NSE: ITCHOTEL) is currently trading at ₹206.01, down 0.82% as of 10:46 am on December 5. The stock opened at ₹211.50 and touched a high of ₹211.99, while the day’s low so far has been ₹205.20. The company has a market capitalization of ₹42,930 crore and a P/E ratio of 47.66. ITC Hotels does not offer a dividend yield at present. Over the past year, the stock has recorded a 52-week high of ₹261.62 and a 52-week low of ₹155.10, showing a wide trading range.

Conclusion

ITC Hotels' share decline was mainly driven by large block trades, likely linked to BAT’s decision to cut its stake. While the sell-off created short-term pressure on the stock, it reflects BAT’s strategy to reduce debt rather than any fundamental weakness in ITC Hotels. Investors may want to watch how the stock stabilises once the stake sale activity settles.

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