ITC Shares Fall Over Four Percent Following Massive Block Deal And GQG Stake Cut

ITC shares tumbled over 4 percent on Thursday, October 8, extending their losses for the third straight session after a large block deal worth Rs 9,437 crore took place. The Economic Times also reported that nearly 39 crore shares changed hands across the NSE and BSE during these deals. The stock traded at around Rs 254 in afternoon trade, down 4.4 percent, making it one of the top losers on the Nifty 50. The stock has fallen over 28 to 30 percent so far in 2026, performing much worse than the Nifty 50 index, which dropped about 15 percent over the same period. ITC's total market value stood at roughly Rs 3.19 lakh crore, while the wider stock market also saw sharp declines with the Sensex dropping 1,065 points and the Nifty falling 366 points.

The Block Deal

About 36.66 crore ITC shares, making up roughly 2.9 percent of the company's total equity, traded in the pre-open block deal window at an average price of around Rs 257 per share. The exact names of the buyers and sellers were not immediately known. Abhinav Tiwari, a senior research analyst at Bonanza, explained that the stock drop stems mainly from the heavy supply of shares through this block trade rather than any new drop in the company's core business health. However, the company recently reported weak quarterly results, as standalone net revenue fell 14.4 percent year-on-year to Rs 16,812 crore in Q1 FY27. EBITDA and net profit dropped 27.9 percent and 27.1 percent respectively, mostly due to a new tax regime that also caused cigarette revenue to fall 25 percent and segment EBIT to drop 35 percent to Rs 3,341 crore, though the cigarette business still kept a high EBIT margin of 62.5 percent. Other divisions performed better, as FMCG Others revenue grew 12 percent, paperboards EBIT rose 38 percent due to lower wood costs, and cigarette prices saw hikes in September including Classic Connect 20s rising to Rs 428 and Gold Flake Super Star 10s going up to Rs 89, even though the agri business suffered an 18 percent EBIT drop due to trade disruptions in West Asia.

GQG Stake Sale

Thursday's block deal follows news earlier in the week that GQG Partners LLC sold about 3.97 crore ITC shares through multiple market trades between May 28, 2025, and October 5, 2026. This brought the combined holding of GQG Partners and its acting partners down to 3.17 percent from 3.48 percent of the total voting capital. The drop was led by the Goldman Sachs Trust II - Goldman Sachs GQG Partners International Opportunities Fund, which cut its holding to 2.16 crore shares, or 1.69 percent, down from 2.40 crore shares, or 1.95 percent. GQG Partners International Equity CIT also cut its stake to 2.52 crore shares, or 0.20 percent, from 2.85 crore shares, or 0.23 percent. ITC has no promoter group, meaning public shareholders hold all of its equity. Major institutional holders include SUUTI with a 7.78 percent stake at the end of the June quarter, mutual funds holding 16.5 percent, and the Life Insurance Corporation of India owning 16.3 percent.

Context

Large block deals often cause temporary stock price drops because a sudden high supply of shares enters the market all at once. Institutional investors frequently adjust their large portfolios based on changing tax laws, quarterly earnings, and global market shifts. ITC operates as a diversified conglomerate with heavy revenue streams spanning tobacco, fast-moving consumer goods, paperboards, and agribusiness.