41.2 lakh shares sold in open market operations in last 1 month
The increased price momentum in the ITC stock has led many top executives to cash out on their holdings in the company. The share sale activity by the top in the recent past as the stock has defied concerns of a potential ban on loose cigarette sales. In the last one month, in which the stock has rallied 11%, executives have liquidated as many as 41.2 lakh shares in multiple open market operations. A list of the top share sale shows that YC Deveshwar, chairman and executive director of the Kolkata-based firm has sold 12.7 lakh shares with a total sell value of R47.5 crore. A compilation of large trades of more than 1 lakh shares shows that KN Grant, whole time director, has also sold shares worth R18.5 crore in early November.
In December alone the stock has hit multiple record highs, taking its year to date tally to 23%. As it peaked at R397.85 on Monday, the FMCG major replaced Reliance Industries as the second most valued listed firm in India boasting a market-cap of more than R3.1 lakh crore.
After observing some selling pressure as the health ministry mulled a proposal to prohibit sales of loose cigarettes, given that the cigarette business contributes more than 60% of the company’s annual revenue. However, subsequent media reports that the government is unlikely to carry out such a sanction has led to increased buying interest in the stock.