ITC Share Price Declines After Wells Fargo’s Stake Sale
Shares of ITC Ltd, one of India’s leading FMCG and cigarette manufacturers, declined in early trade on Tuesday, March 4, 2025, following a significant stake sale by Wells Fargo. The American financial services company divested shares worth ₹106 crore, leading to a marginal decline in the stock price.
At 9:23 AM IST, Companies share price fell 0.52% to ₹395.4 per share on the National Stock Exchange (NSE). Despite the dip, the company maintained a strong market capitalization of ₹4,94,743.44 crore.
The stake sale triggered cautious investor sentiment, raising concerns about foreign institutional investor (FII) activity in the stock. However, analysts believe that Companies strong fundamentals and diversified business portfolio continue to support its long-term growth.
Details of the Block Deal
According to block deal data on the NSE, Wells Fargo Emerging Markets Equity CIT, an affiliate of Wells Fargo, sold 26.55 lakh shares of Company at an average price of ₹401.60 per share, amounting to a total transaction value of ₹106.62 crore.
Who Bought These Shares?
- SEI Trust Company purchased the shares through one of its investment arms, indicating continued institutional interest.
- Despite the stake sale by Wells Fargo, analysts note that Company remains a strong player in India’s FMCG and tobacco industry, making it a favored choice among domestic and foreign institutional investors.
Although such block deals are routine in the market, they sometimes lead to short-term price corrections, as seen in Companies stock movement on March 4.
Impact on ITC’s Market Capitalization
Following the stake sale and minor price dip, Companies market capitalization stood at ₹4,94,743.44 crore.
Stock Performance on March 4, 2025
- Opening Price: ₹397.50
- Intraday Low: ₹395.4
- Intraday High: ₹401.60
- Current Market Cap: ₹4,94,743.44 crore
While the decline was modest, the stock’s movement highlights the impact of large institutional transactions on Companies share price.
ITC Q3 Earnings Report: Key Highlights
On the financial front, ITC recently announced its Q3 results for the October-December quarter of FY 2024-25, reporting a 7.27% decline in consolidated net profit due to subdued demand and higher input costs.
Q3 Financial Performance
- Net Profit: ₹5,013.16 crore (-7.27% YoY)
- Revenue from Operations: ₹20,349.96 crore (+9.05% YoY)
While revenue grew by 9.05% year-on-year, the dip in net profit highlights the challenges posed by rising input costs and weaker demand conditions in certain segments.
Performance Across Business Segments
1. Cigarette Business
- Revenue from cigarettes climbed 7.83% YoY to ₹8,944.83 crore.
- ITC credited the growth to strategic portfolio interventions and efforts to counter illicit trade.
2. FMCG Segment (Non-Tobacco Business)
- The FMCG – Others segment saw a 4% revenue growth YoY.
- ITC continues to strengthen its packaged foods, personal care, and hygiene portfolio, contributing to steady growth in the non-tobacco FMCG segment.
3. Agri-Business Segment
- ITC’s agri-business revenue surged 9.7% YoY, mainly driven by strong demand for leaf tobacco and value-added agricultural products.
- The company continues to expand in this segment, leveraging its expertise in crop sourcing, processing, and exports.
4. Paperboards, Paper, and Packaging Segment
- This segment faced headwinds due to cheap Chinese and Indonesian imports, soft domestic demand, and a sharp rise in wood prices.
- Despite these challenges, ITC remains a major player in India’s paper and packaging industry.
The overall performance across multiple business segments demonstrates ITC’s diversified revenue streams, which help balance slowdowns in certain sectors.
Dividend Announcement and Payment Timeline
To reward shareholders, ITC declared a dividend of ₹6.5 per share for FY25.
Dividend Key Details
- Record Date: February 12, 2025
- Payment Date: Between March 6 and March 8, 2025
ITC’s consistent dividend payouts make it a popular stock among income-focused investors, offering both capital appreciation and steady returns.
Final Thoughts on ITC’s Share Price Movement
Short-Term Outlook
- The minor 0.52% dip in ITC’s stock price on March 4, 2025, was driven by Wells Fargo’s stake sale.
- However, the stock remains resilient, backed by strong fundamentals and diversified business operations.
Long-Term Prospects
- ITC’s FMCG business continues to expand, reducing reliance on the cigarette segment.
- Dividend payouts and stable earnings make ITC a solid choice for long-term investors.
Despite short-term fluctuations, ITC remains a leading player in India’s consumer goods and tobacco industry, making it a highly valued stock in the market.
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