UTI may not unload ITC shares

Meanwhile, the bourses have evoked lukewarm response to the news that UTI was ready to offload ITC stakeholding in favour of BAT. Brokers at the Calcutta Stock Exchange felt that the news was doctored by some who had taken long positions in the scrip

According to brokers, a section of the operators were inciting others to buy ITC scrip by floating such rumours so that they could offload the shares at a higher price. In fact, the scrip has lost Rs five between the opening and closing prices during today8217;s trading at the CSE. The scrip opened at Rs 818.70, while it closed at Rs 813.50.

Corporate analysts were of the opinionthat if UTI reshuffles its debt/equity mix in the portfolio, then changes in the percentage stakeholding of different companies was a distinct possibility. This argument could be reinforced by the UTI chairman P S Subramanyam8217;s recent statements that the Trust8217;s focus would gradually shift from equity to debt instruments.

Analysts, however, opined that UTI would certainly not alter its holdings in pivotals like ITC to a large extent. Further, even if UTI decided to sell the stakeholding to BAT through a negotiated deal based on pure commercial considerations, this may lead to fresh rumblings as witnessed during K L Chugh8217;s tenure at ITC.