Itc Lights Up On Uti Plan To Sell Stake

The ITC share price today hit an intra-day high of Rs 648 following a Business Standard report that the Unit Trust of India plans to sell its 11 per cent stake in the tobacco-to-hotels major.

However, the stock shed gains on profit-booking at higher levels and closed at Rs 640.85, up 1.85 per cent, amid a volume of 2.16 lakh shares on the Bombay Stock Exchange. ITC has a weightage of over 6.1 per cent in the Sensex. UTI is ready to sell its 11.06 per cent equity holding in ITC to anyone, but wants a huge premium for it.

 

UTI holds 2,71,49,822 shares or a 11.06 per cent stake in ITC through its various schemes. The value of the stake at the current market price works out to over Rs 1,752 crore. There also have been reports that ITC has moved the Bombay High Court to pursue the transfer of assets and funds from the US by Suresh and Devang Chitalia, and their companies, who owe the tobacco major $12 million following an order of the district court of New Jersey.

The move follows the discovery of certain documents by ITC indicating that the Chitalias were possibly transferring some assets and funds to their associates in India.

Yesterday, ITC reported that it was hit by a steep fall in cigarette sales volume in 2001-02. Sales volumes during the fiscal fell to 60,865 million sticks from 66,478 million sticks in 2000-01.

However, in contrast, revenues picked up by 4.39 per cent to Rs 8,013.58 crore (Rs 7,676.63 crore). The rising revenues were due to price hikes.

The company attributed the fall in volumes to