ITC shares crash 10%: Rajiv Jain's GQG, PPFAS are among leading institutions to have over 1% stake in the firm

ITC share price

• ITC shares fell 10 percent after new excise duty on cigarettes was announced
• Mutual funds and LIC hold major ITC stakes
• Excise duty hike may impact ITC's margins and cause stock price volatility

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The shares of heavyweight ITC tumbled 10 percent on January 1 after the government imposed new excise duty on cigarettes, effective from next month. Several mutual fund houses will likely see some impact on their holdings, as they own notable stake in the company

The shares of the company dropped to Rs 362.70 apiece today.

ITC shareholding pattern:

According to data on ITC's shareholding pattern as at the end of the July-September quarter of the financial year 2026, the entire 100 percent stake in the company is held by public shareholders and no promoter or promoter groups.

Among the public shareholders, a total of 46 mutual funds held 14.30 percent stake in the company. SBI Mutual Funds accounted for the largest holding among them, owning 3.26 percent stake in the company at the end of September. ICICI Prudential Mutual Funds followed with 2.28 percent stake.

Nippon Life India Trustee Mutual Funds, UTI Mutual Funds, Parag Parikh Flexi Cap Mutual Funds and Mirae Asset Mutual Funds followed with stake holdings in the range of 1.06 to 1.36 percent.

Additionally, Life Insurance Corporation of India (LIC) held 15.86 percent stake in ITC, while General Insurance Corporation of India (GIC) held 1.73 percent stake, and The New India Assurance Company Limited held 1.4 percent stake.

Among the foreign investors, Tobacco Manufacturers (India) Limited held the largest stake of 17.79 percent. GQG Partners Emerging Markets Equity Fund held more than 2 percent stake in the hotels-to-cigarettes conglomerate at the end of September 2025.

ITC is a great growth story and is reasonably valued, GQG Partners CIO Rajiv Jain has said after his investment firm raised stake in the conglomerate January 2024 after having owned the stock for two years.

At the current level of 23x earnings, ITC's valuation is “incredibly attractive” and the stock should see lower double-digit earnings as well, Jain had said in an interview with CNBC.

What lies ahead for ITC?

The current excise duty hike is a substantial near-term deterrent to the cigarette operations of the company, considering the negative impact of increased taxes on the margins of the company, said Siddharth Maurya, Founder & Managing Director at Vibhavangal Anukulakara.

“Although the company has a diversified business, the sensitivity of earnings to the tobacco sector means the stock price will remain volatile in the foreseeable future due to regulatory changes,” he added.

ITC share price history:

ITC shares have fallen nearly 10 percent in the past five days, and nearly 12 percent in the past six months. The shares currently have a P/E ratio of 25.02, and a market capitalisation of Rs 4.59 lakh crore.

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