ITC jumps after DIPAM secretary says Govt not to sell its stake

ITC rose 3.38% to Rs 386.75 after the media reported that the government does not plan to sell its indirectly held stake in ITC for now.

"The government does not plan to sell its indirectly held stake in ITC at this point," Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), told the media today, 14 February 2023.

Pandey reportedly denied news reports that the government is looking to sell its ITC stake to help meet its divestment target for FY23. "News reports about planning stake sale are wrong stories, he reportedly said.

The media earlier reported that the Centre was reviving a plan to sell part of its indirectly held stake in ITC and the transaction could even be completed in the current financial year.

The government held 97.45 crore shares, or a 7.86% stake, in ITC via the Specified Undertaking of the Unit Trust of India (SUUTI).

ITC is a diversified conglomerate with businesses spanning fast-moving consumer goods, hotels, paperboards and packaging, agribusiness and information technology.

The company's standalone net profit rose 21.05% to Rs 5,031.01 crore on 2.51% increase in net sales to Rs 16,082.40 crore in Q3 December 2022 over Q3 December 2021. EBITDA improved 22% to Rs 6,223 crore in Q3 FY23 from Rs 5,102 crore in Q3 FY22.

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