BAT Sells 9% Stake in ITC Hotels for ₹3,856 Crore to Global Investors
British Multinational BAT Plc Divests 9% Stake In ITC Hotels To Abu Dhabi Investment Authority, Societe Generale, & Morgan Stanley For ₹3,856 Crore
British multinational BAT Plc divested a 9 per cent stake in ITC Hotels to Abu Dhabi Investment Authority, Societe Generale, and Morgan Stanley for Rs 3,856 crore. Tobacco Manufacturers India sold 12.33 crore equity shares of ITC Hotels, Myddleton Investment Company offloaded 4.86 crore scrips of the firm, and Rothmans International Enterprises disposed of nearly 1.55 crore shares of ITC Hotels.
British American Tobacco (BAT) has sold a 9% stake in ITC Hotels for ₹3,856 crore. The deal involved 18.75 crore shares, traded at an average price of ₹205.65 each. This move follows the company’s demerger from ITC Ltd in early 2025, which made ITC Hotels an independent listed entity.
The transaction took place on 5 December 2025, with major buyers including Abu Dhabi Investment Authority, Societe Generale, and Morgan Stanley. Additional investors such as Nippon India Mutual Fund, HCL Capital, BNP Paribas Arbitrage, and Vanguard Group also participated in the purchase.
BAT’s subsidiaries— Tobacco Manufacturers India Ltd, Myddleton Investment Company, and Rothmans International Enterprises—collectively offloaded the shares. Tobacco Manufacturers India sold 12.33 crore shares, Myddleton Investment disposed of 4.86 crore, and Rothmans International sold 1.55 crore. The total proceeds from the sale amounted to approximately $419.8 million.
ITC Hotels, which operates over 140 properties across more than 90 destinations in the Indian subcontinent, saw its share price dip by 1% on the NSE, closing at ₹205.65. The company had become a standalone listed firm in January 2025 after the demerger from its parent, ITC Ltd.
BAT plans to use the funds to reduce its debt by the end of 2026. The sale marks a significant reduction in the company’s direct holdings in ITC Hotels, which were acquired during the demerger process. The transaction also highlights strong investor interest in India’s hospitality sector.
