ITC Shares Crashes 4%; BAT Likely to Offload 2.3% Stake Via Block Deal

ITC Limited shares dropped by 4% in today’s trading session amid reports of multiple block deals in the counter as British American Tobacco (BAT) is expected to sell 2.6% stake worth ₹14,000 crore.

As per reports, 33.25 crore shares (about 2.57% stake) changed hands through block deals, totalling ₹13,900 crore. The parties involved in the block deal remain unknown.

The block deal is larger than BAT’s earlier quoted stake sale of 2.3%. Despite this development, BAT will remain the largest investor of ITC post-disposal, with a 23.1% stake.

Should you buy ITC?

Harshal Dasani, research analyst at INVasset PMS, said the block deal has prompted investors to accumulate shares with a focus on long-term growth.

“ITC witnessed a ₹13,863 crore block deal as BAT sold a 2.57% stake at ₹417, triggering a temporary price dip. The stock closed at ₹402.20, slipping below its 20/50/100/200 EMA cluster around ₹426. Despite the short-term volatility, volumes indicate strong institutional participation,” Dasani said.

He added that RSI near 46 signals a neutral zone—not weakness. Considering the strong fundamentals and attractive valuations, the correction comes with strategic accumulation opportunities for long-term investors, with ₹390– ₹400 may act as a solid base, Dasani said.