Soon after the government on March 24 said that a part of the cigarette firm, ITC’s stake will be divested to Life Insurance Corporation of India, the stock of the the cigarette company on Monday's dropped by 1.2% to Rs 278.45 on the BSE platform.
Minister of State for Finance, Arjun Ram Meghwal in a written reply to the Lok Sabha on Friday had stated the divestment plan.
Through block trade on March 7, 2017, the government through the Unit Trust of India (SUUTI) divested 2% shares of the total share of ITC to LIC. As of December 31, 2016, LIC of India held 14.29% and SUUTI has held 11.1% stake in the company.
ITC Limited is engaged in the marketing of fast moving consumer goods (FMGC). The company operates through four segments: FMCG; hotels; paperboards, paper and packaging, and agri Business. The FMCG segment includes cigarettes, such as cigarettes and cigars, and others.