ITC Properties discloses transaction involving sale of all equity interest in Success Well Investment Limited

ITC Properties has completed a significant equity transaction involving its subsidiary, ITC Hotels, following a block deal that saw British American Tobacco (BAT) divest a 9% stake in the hospitality firm for INR 38.2 billion. The sale, executed through 187.5 million shares, reduced BAT's ownership from 15.3% to 6.3%. Proceeds from the transaction are earmarked to reduce corporate debt and align with BAT's target leverage range of 2–2.5x adjusted net debt/adjusted EBITDA by 2026.

Key institutional buyers included HCL Capital Private Limited, which acquired 14.58 crore shares for INR 2,998 crore at INR 205.65 per share, 1% below the previous close. Other participants included Abu Dhabi Investment Authority (ADIA), Morgan Stanley, and Vanguard Group, collectively injecting INR 3,856 crore into the company. The block deals, announced on March 8, 2026, reflect strategic capital reallocation by BAT, which acquired its stake in ITC Hotels during a demerger from ITC Limited earlier in 2025.

ITC Hotels, operating over 140 properties across 90+ destinations, reported Q2 FY26 revenue of INR 839 crore, with 8% revenue growth and a 74% surge in profit after tax. The company aims to expand to 20,000 hotel keys by 2030, supported by its sustainability initiatives, including 23 LEED Platinum-certified properties. The transaction underscores evolving investor confidence in India's hospitality sector amid recovery trends and long-term growth prospects.

Economic Times, March 2026: Economic Times, March 2026.
LinkedIn post, March 2026: LinkedIn post, March 2026.