A block deal worth approximately ₹9,400 crore was reported to have taken place in ITC on Thursday, 8 October. The transaction, believed to have been executed by GQG Partners, saw a large portion of the conglomerate’s shares sold, prompting a sharp sell‑pressure on the stock. The share price fell as much as 4.36%, closing at ₹254.10 on the NSE. A banker described the trade as a “clean‑out” transaction, implying that the overhang from the stake sale had been cleared. The move has attracted attention from institutional investors and market observers alike.

A foreign long‑only fund reportedly acquired roughly one‑third of the block, while the remaining shares were purchased by a group of mutual funds, including Nippon India, ICICI Prudential, SBI, Kotak and Aditya Birla Capital, according to reports. The involvement of these institutional buyers underscores the significance of the transaction and the confidence that large investors place in ITC’s long‑term prospects. The block sale, which cleared a substantial stake, may influence the company’s shareholder composition and liquidity dynamics in the near term.

GQG Partners, a global investment management firm founded by Rajiv Jain, has been a significant institutional investor in ITC for years. The fund manager had built a sizeable position in the conglomerate, making its recent stake reduction a noteworthy development for the stock. Analysts at CITI have recently stated that they believe the earnings downgrade cycle is largely over and see a favourable risk‑reward profile for ITC, despite the near‑term pressures arising from the block sale. This assessment reflects confidence in the company’s fundamentals amid the current market volatility.

In September, ITC announced another round of cigarette price hikes. Classic Connect prices rose by about 10% to ₹21.4 per stick, while Gold Flake Super Star now costs ₹89 for a 10‑cigarette pack. These increases followed earlier price adjustments in February, which were implemented after a nearly 40% tax hike that became effective on 1 February. The price moves are significant because the cigarette segment accounts for roughly 40% of ITC’s segment revenue and contributes a larger share of its operating profit, thereby helping offset higher taxes and input costs.

Chairman and Managing Director Sanjiv Puri, speaking at the company’s Annual General Meeting, projected that ITC’s FMCG market would expand to around ₹8 lakh crore by 2035. He highlighted the rapid evolution of the Indian FMCG landscape, citing aspirational Bharat, premiumisation, Gen Z and Gen Alpha consumers, expanding digital access and the growth of quick commerce as key drivers reshaping categories, channels and expectations. To capture these trends, ITC is deploying an AI‑led consumer insight ecosystem that enables micro‑segmentation and supports the creation of differentiated offerings tailored to evolving consumer needs, lifestyles and occasions, according to Puri.