Life Insurance Corporation of India purchased a 2% stake in ITC, helping the government raise Rs.6,700 crore through the deal. These shares were previously held by Specified Undertaking of the Unit Trust of India or SUTTI. SUUTI sold these shares at a discounted rate of Rs.275.85 per share, well below the Rs.260 closing price.
Shares of ITC soared after the deal, hitting a 52 week high, trading at Rs.291.95 this morning.
SUUTI now owns a 9.17% stake in the company, down from the 11.17% it previously owned. The government aims that divestment will help it reach its target of Rs.72,500 crore for the upcoming financial year, having already sold stakes in L&T last November.
In addition to ITC, SUUTI has a stake in 51 companies, including 8 unlisted and 43 listed ones. Divestment is expected to earn the government a further Rs.15,000 crore this financial year, helping it inch closer to its target of Rs.56,500 crore for this year.