Govt sells 2% stake in ITC, raises Rs 6.7k cr

Held through SUUTI, stake in tobacco-to-FMCG major comes down to 9.1%

The government on Tuesday sold two per cent stake in ITC to Life Insurance Corporation of India (LIC) and earned Rs 6,690 crore (around $1 billion) as part of its divestment plan for 2016-17.

The stake, held under the so-called Specified Undertaking of the Unit Trust of India (SUUTI), was sold at Rs 275.85 per share through block deals. According to stock exchange data, the stake was picked up by LIC, LIC (Scheme 5) and LIC Allocation Contra Fund.

Shares of ITC closed at Rs 277.1, up 0.25 per cent after hitting a high of Rs 292 on the BSE.