ITC surges 6% on govt stake sale, trims most gains later

ITC stock surged nearly 6 per cent after the government sold its 2 per cent stake in the FMCG firm that was held through SUUTI, but most of the gains were erased due to profit-booking.
After surging 5.62 per cent to Rs 291.95 -- its 52-week high -- on BSE during the day, the stock finally ended at Rs 277.10, up 0.25 per cent.
On NSE, it ended with marginal rise of 0.10 per cent to close at Rs 277.10.
On the volume front, 21.11 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.

The government today raised Rs 6,700 crore through sale of 2 per cent stake in ITC, held through Specified Undertaking of the Unit Trust of India (SUUTI).
The transaction took place through block deals with Life Insurance Corporation of India (LIC) picking up the entire chunk on offer at Rs 275.85 a piece, sources said.
SUUTI, which was created to take over part of the assets and liabilities of the now-defunct Unit Trust of India, held 11.17 per cent stake in ITC.
With this, the government holding in ITC through SUUTI has come down to 9.17 per cent.