British American Tobacco (LSE:BATS) has completed the sale of 187.5 million shares in ITC Hotels — equivalent to 9% of the company’s equity — via an accelerated bookbuild. The deal raised INR 38.2 billion in net proceeds, which BAT intends to use to help meet its targeted leverage ratio by the end of 2026. After the transaction, BAT continues to hold a 6.3% interest in ITC Hotels, reflecting a deliberate effort to strengthen its balance sheet while retaining exposure to the hospitality sector.

BAT’s outlook is supported by strong technical momentum and favourable sentiment from recent earnings discussions, driven in part by growth in its smokeless and modern oral product lines. Nevertheless, volatility in financial performance and an elevated P/E ratio temper expectations. The company’s substantial dividend yield remains an important draw for income-focused investors.

More about British American Tobacco

British American Tobacco (BAT) is a major global consumer goods group aiming to accelerate the transition away from combustible cigarettes through its Tobacco Harm Reduction strategy. Its portfolio spans multiple reduced-risk nicotine products designed to offer alternatives to traditional tobacco. BAT employs more than 48,000 people worldwide and reported £25.9 billion in revenue for 2024, maintaining a strong emphasis on sustainability and environmental responsibility.

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