As many as 366.7 million shares, representing approximately 2.93% of the company's equity, changed hands in a single large trade on Thursday, according to The Hindu BusinessLine. The transaction took place at an average price of ₹257 per share, totaling ₹9,437 crore. According to latest reports, GQG Partners is likely to have been the seller in this block deal, with a banker indicating it was a "clean-out trade", suggesting that the overhang from the stake sale has been cleared. A foreign long-only fund reportedly bought around one-third of the block, while the remaining shares were picked up by mutual funds including Nippon India, ICICI Prudential, SBI, Kotak, and Aditya Birla Capital. The stock slipped as much as 4.36% to ₹254.10 on the NSE, with trading volumes estimated at around ₹10,054.67 crore.
The latest block deal follows GQG Partners disclosure earlier this week that it had sold 3.97 crore ITC shares through multiple on-market transactions between May 28, 2025, and October 5, 2026. Following these transactions, the combined shareholding of GQG Partners and its persons acting in concert (PACs) declined to 3.17% from 3.48% of ITC's total voting capital. The stake reduction was primarily driven by Goldman Sachs Trust II -- Goldman Sachs GQG Partners International Opportunities Fund, which lowered its holding to 21.16 crore shares, or 1.69%, from 24.40 crore shares, or 1.95%. GQG Partners International Equity CIT also reduced its holding to 2.52 crore shares, or 0.20%, from 2.85 crore shares, or 0.23%. The Economic Times reports that Goldman Sachs Trust II held a 2.06% stake in ITC, while GQG Partners Emerging Markets Equity Fund owned a 1.06% stake. According to CNBC TV18, GQG Partners held close to 3% stake in ITC at the end of the June quarter, making the block deal significant for the fund's overall position.
GQG Partners has emerged as a significant net seller of Indian equities over the last 12 months, with data showing the fund offloaded nearly ₹28,000 crore worth of equity across various companies. As per CNBC TV18, the fund sold ₹12,000 crore worth of shares across Adani Group companies during the June quarter alone. The fund sold around 1.59% stake in Adani Enterprises worth ₹6,200 crore, while maintaining a 1.98% stake in the flagship company as of July 7. GQG also sold 0.5% stake in Adani Green Energy worth ₹960 crore and ₹2,100 crore worth of shares in Adani Power. Beyond Adani Group, the fund sold 1.85% stake in GMR Airports for around ₹3,500 crore, while still holding around 3.7% stake in the company. The fund also sold 8.8 lakh shares of Patanjali Foods from February to August 2026 and 1.52 crore shares worth ₹675 crore of JSW Energy.
ITC shares fell nearly 4% on Thursday, opening lower at ₹264 and touching an intraday low of ₹254.10 on the NSE, down from the previous close of ₹265.70, according to Live Mint. The stock was hovering just above its 52-week low of ₹254.65 hit on October 1. The stock has underperformed significantly, with ITC losing 29.89% year-to-date, significantly underperforming the Nifty 50, which is down 14.45% over the same period. The stock's 52-week high stands at ₹426.40, touched on October 31, 2025, reflecting a drawdown of roughly 40% from that peak. The company's total market capitalisation stood at ₹3,19,716 crore as of Thursday morning, with total traded volume of 283.77 lakh shares worth ₹735.05 crore by mid-session.
The block deal comes at a time when ITC's cigarette business is facing significant headwinds following the implementation of a 40% GST rate on tobacco products effective February 1, which prompted multiple rounds of price increases. The Classic Connect 20-cigarette pack now retails at ₹428, up from ₹300 at the start of the year, marking a 9.74% increase. Meanwhile, the Gold Flake Super Star 10-cigarette pack has risen to ₹89 from ₹59 over the same period, a 12.66% increase. These increases follow earlier price revisions after tax changes, with Nomura noting that ITC's price increases were aimed at cushioning the impact of the tax change. HDFC Securities analysts noted in a September 28, 2026 report that ITC had adopted a phased approach to price increases in cigarettes, except for KSFT, with the bulk of required price increases now in place. The cigarette segment accounts for around 40% of ITC's segment revenue, but contributes a much larger share of its operating profit, making price increases crucial for offsetting higher taxes and input costs.
