ITC Shares Experience Volatility Amid Strategic Moves and Market Reactions

ITC Limited, a leading conglomerate in India, has recently witnessed significant fluctuations in its share price due to a series of strategic decisions and market developments.

Stake Sale by British American Tobacco

On May 28, 2025, ITC’s shares declined by over 5% following reports that British American Tobacco (BAT), its largest shareholder, planned to sell a 2.3% stake in the company through a block deal valued at over ₹11,600 crore. This sale would reduce BAT’s holding in ITC to 23.1%, with the Indian government becoming the largest shareholder group.

Impact of GST Revisions

In September 2025, ITC’s shares dropped over 2% after the government announced changes to the Goods and Services Tax (GST), making tax applicable on the transaction value of cigarettes instead of the earlier method. Analysts are assessing the potential impact of this revision on ITC’s profitability and market strategy.

Acquisition of Sresta Natural Bioproducts

In June 2025, ITC completed the acquisition of 100% share capital of Sresta Natural Bioproducts Pvt. Ltd. for up to ₹472.5 crore. This move is expected to strengthen ITC’s presence in the organic and natural products market, aligning with the growing consumer preference for healthier options.

Market Performance and Analyst Outlook

Despite recent challenges, ITC’s diversified portfolio and strategic initiatives have kept analysts optimistic. Many maintain a ‘buy’ rating on the stock, citing the company’s robust fundamentals and growth prospects in various segments, including FMCG, agriculture, and hospitality.