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ITC falls 2% as 36 crore shares change hands in Rs 9,437 crore block deal; cigarette prices raised up to 12.66%
ITC raised the Classic Connect 20-cigarette pack to Rs 428 from Rs 390, a 9.74% increase, and Gold Flake Super Star 10-pack to Rs 89 from Rs 79. Separately, 36 crore ITC shares worth Rs 9,437 crore changed hands in a block deal.
The numbers
Figures from NDTV Profit,
| GST rate on cigarettes from 1 February: | 40% |
|---|---|
| Block deal price per share: | Rs 257.35 |
Why it matters to operators and investors
A Rs 9,437 crore block at Rs 257.35 a share shows deep institutional liquidity in ITC, and the quick pass-through of the 40% GST rate on cigarettes confirms pricing power in the core business that funds its non-cigarette FMCG expansion.
What to watch next
- ITC closing back above the Rs 257.35 block price
- Cigarette volume growth in ITC's next quarterly results
- Price increases announced by rival cigarette makers
- Further block or bulk deal disclosures in ITC shares
- Any GST Council move on the 40% cigarette rate
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- ITC is likely to extend price increases to more cigarette brands and pack sizes, since the Classic Connect and Gold Flake Super Star hikes pass on the 40% GST rate.
- Rivals such as Godfrey Phillips may follow with comparable increases, as the market leader has set the price ladder.
- Institutional investors are likely to lean on the Rs 257.35 block price as a reference level, buying near it and selling into rallies until the overhang is judged to have cleared.
- Smokers are likely to trade down to smaller packs or cheaper brands in the near term, and the shift is likely to be sharpest in the price-sensitive segments.
- Brokerages may revise cigarette-segment estimates to weigh higher realisations against volume risk once management comments on early demand.