Who Owns ITC Company?

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Who owns ITC Company?

Understanding a company's ownership is key to its strategy and governance. Recent stake sales by British American Tobacco (BAT) in March 2024 and May 2025 have brought the ownership of ITC Limited into sharp focus.

ITC Limited, a diversified Indian conglomerate, has a history rooted in British ownership, evolving significantly over the decades. Its current ownership structure reflects a blend of institutional and public shareholders.

Who owns ITC Company?

ITC Limited, established in 1910, has transformed from a tobacco company into a conglomerate with interests in FMCG, hotels, paperboards, agri-business, and IT. As of 2024, it ranks as India's second-largest FMCG company by market cap, with a valuation exceeding ₹4,38,601 crore (approximately US$52.5 billion). This growth trajectory has been influenced by its ownership dynamics, including significant stake adjustments by its former parent, British American Tobacco. The company's diverse portfolio includes popular brands across various categories, such as those analyzed in an ITC PESTEL Analysis.

Historically, British American Tobacco (BAT) was the largest shareholder. However, following stake sales in March 2024 and May 2025, BAT's shareholding has reduced. The Life Insurance Corporation of India (LIC) is another significant institutional investor. The remaining ownership is distributed among a large base of public shareholders, including retail investors and other financial institutions. This broad public float contributes to the company's status as a publicly traded entity, with its shares listed on major Indian stock exchanges.

ITC Limited began its journey on August 24, 1910, as the Imperial Tobacco Company of India Limited. It was established as a subsidiary of the British American Tobacco Company and registered in Kolkata, India. Initially, its operations were centered on tobacco products.

Inception as a Subsidiary

ITC Limited was founded as a subsidiary of the British American Tobacco Company. This established its initial identity as a British-owned entity operating in India.

Early Focus on Tobacco

In its early years, the company's business was primarily focused on the production and sale of tobacco products. This included items like cigarettes, cigars, and pipe tobacco.

Transition to Public Ownership

A significant change occurred on October 27, 1954, when the company converted from a private limited entity to a public limited company. This move opened its ownership to a wider base of public shareholders.

Evolution of Identity

The company underwent several name changes throughout its history, reflecting its growing diversification and Indianization. These changes marked its evolution from its initial tobacco-centric operations.

Gradual Indianization

The series of name changes, from Imperial Tobacco Company of India Limited to I.T.C. Limited and finally ITC Limited, signaled a gradual shift towards Indian ownership and a broader business scope beyond tobacco.

Founding Structure

While the company's establishment is attributed to a pioneering vision, specific individual founders with detailed equity splits at inception are not explicitly documented. Its origin as a subsidiary meant the British American Tobacco Company was the principal early backer.

The company's name changes from Imperial Tobacco Company of India Limited (1910-1970) to India Tobacco Company Limited (1970-1974), then to I.T.C. Limited (1974-2001), and finally to ITC Limited since 2001, highlight its journey of diversification and increasing Indianization. This evolution is detailed further in the Brief History of ITC.

Key Ownership Milestones

ITC Limited's ownership structure has evolved significantly since its inception. The transition to a public limited company in 1954 was a pivotal moment, opening the door for broader public participation.

• Established as Imperial Tobacco Company of India Limited in 1910.
• Operated as a subsidiary of British American Tobacco Company.
• Converted to a public limited company on October 27, 1954.
• Underwent name changes reflecting diversification and Indianization.

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ITC Limited's ownership structure has evolved significantly since its incorporation, with key shifts in major shareholdings impacting its corporate landscape. The company converted to a Public Limited Company on October 27, 1954, and currently has no promoter holding, with all shares being publicly traded.

British American Tobacco (BAT) Plc, formerly the largest shareholder, has progressively reduced its stake in ITC Limited. In March 2024, BAT lowered its holding by 3.5%, and by May 2025, a further sale of a 2.3% stake reduced its ownership to 23.1%. The Life Insurance Corporation of India (LIC) remains a significant stakeholder, holding 15.52% as of the end of the March quarter of FY25. Overall institutional investors collectively held 84.93% of ITC Limited as of June 2025, with a notable increase in mutual fund holdings to 13.76% during the same period. The Indian public's shareholding also saw an increase, reaching 12.57% by June 2025. A pivotal structural change was the demerger of ITC's hotel business, effective January 1, 2025, creating ITC Hotels Limited, in which ITC Limited retains a 39.88% stake. These adjustments reflect strategic moves to optimize capital allocation and unlock value across ITC's diverse business segments, aligning with the broader strategic considerations discussed in articles like Marketing Strategy of ITC.

Key Stakeholder Movements

Understanding the shifts in major shareholdings provides insight into the evolving investor sentiment and strategic direction of ITC Limited.

• BAT Plc reduced its stake to 23.1% by May 2025.
• LIC holds a substantial 15.52% stake as of March 2025.
• Mutual fund investments increased to 13.76% by June 2025.
• The hotel business demerger created a new entity, ITC Hotels Limited.

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The Board of Directors at ITC Limited is instrumental in guiding the company's strategic direction and operational oversight. As of 2025, Sanjiv Puri leads the company as Chairman and Managing Director, a role he has held since May 2019. He also chairs the board of ITC Hotels Limited.

ITC Limited adheres to a one-share-one-vote principle, a standard practice for publicly listed entities without a controlling promoter. This structure ensures that voting power is directly proportional to share ownership. Recent shareholder decisions, such as the approval of the hotel business demerger in June 2024 despite some advisory recommendations against it, highlight the collective influence of the broader shareholder base in significant corporate actions.

Understanding ITC Limited's Ownership Structure

ITC Limited's ownership is characterized by a dispersed shareholding pattern, with no single entity holding a dominant stake. This structure reflects its status as a publicly traded company where ownership is distributed among various investor types.

• The company operates on a one-share-one-vote basis, meaning voting power aligns directly with share ownership.
• There are no indications of dual-class shares or other mechanisms that grant disproportionate control to specific shareholders.
• Institutional investors, including mutual funds and foreign portfolio investors, are significant holders of ITC Limited shares.
• Retail investors also form a substantial part of the ITC company shareholders, contributing to the broad ownership base.
• Understanding the Mission, Vision & Core Values of ITC can provide context to the company's long-term strategic decisions influenced by its diverse ownership.

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Over the past few years, ITC Limited's ownership structure has undergone notable transformations, influenced by strategic decisions and market dynamics. These changes reflect a broader trend of corporate evolution within the company.

Recent developments highlight a strategic reshaping of ITC Limited's business and ownership. British American Tobacco (BAT) has continued to reduce its stake, selling significant portions in March 2024 and again in May 2025, reducing its holding to 23.1%. This move is part of BAT's broader strategy for financial flexibility. Concurrently, the demerger of ITC's hotel business into a separate entity, ITC Hotels Limited, effective January 1, 2025, has altered the corporate structure, with ITC Limited retaining a substantial minority stake of 39.88% in the new hotel company.

Institutional Investor Shifts

Foreign Institutional Investors saw a decrease in their holdings, while Mutual Funds increased their stake in ITC Limited between June 2024 and June 2025. The Indian Public's share also grew during this period.

Strategic Acquisitions

ITC has actively expanded its FMCG portfolio through acquisitions. ITC Infotech acquired Blazeclan Technologies for ₹485 crore, and ITC Limited secured full ownership of Sresta Natural for ₹400 crore and 24 Mantra Organic for ₹472.5 crore.

Corporate Restructuring and Leadership Changes

The demerger of the hotel business is a key structural change. Leadership also saw adjustments with resignations from Non-Executive Director positions, impacting the Competitors Landscape of ITC.

Company Transformation Focus

ITC's strategic direction, as outlined in its FY24-25 annual report, emphasizes a transformation from a tobacco-centric business to a diversified FMCG player. This shift is supported by its ownership trends and acquisition strategies.

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