Shares of ITC dropped over 3% after British multinational BAT Plc trimmed its ownership in the conglomerate by divesting a 2.5% stake for ₹12,927 crore ($1.51 billion) through a block deal.

The stock declined 3.18% to settle at ₹420.10 on the BSE. During the day, it lost 4.33% to ₹415.10.

At the NSE, it dropped 2.97% to ₹421.

The company’s market valuation declined by ₹17,269.48 crore to ₹5,25,718.17 crore.

The stock emerged as the biggest laggard among the BSE Sensex firms.

The BSE barometer declined 239.31 points or 0.29% to settle at 81,312.32. The NSE Nifty dropped 73.75 points or 0.30% to 24,752.45.

British American Tobacco (BAT), through its arm Tobacco Manufacturers (India) Ltd, sold the stake in Kolkata-based ITC, according to a revised term sheet accessed by PTI.

Before the latest transaction, BAT through its affiliates— Rothmans International Enterprises, Myddleton Investment Company and Tobacco Manufacturers (India) Ltd— owned a combined 25.44% stake in ITC Ltd.

Following the completion of the block trade, BAT will remain a significant shareholder of ITC, with less than 23% stake in ITC.

As per the latest block deal, up to 31.3 crore equity shares of ITC were sold at a final price of ₹413 per share.