After the latest deal, LIC will hold 16.32% in the tobacco-to-FMCG major. ITC's latest shareholding data showed as of December 30, LIC held 14.32% in the company. The stake sale is part of the government's divestment programme for the current fiscal with the target set at Rs 56,500 crore. So far this year, the government has mobilised about Rs 37,000 crore, including Tuesday's ITC deal. In Tuesday's relatively weak market, ITC's stock price on NSE closed at Rs 277, up a marginal 0.2% over its previous close. The government holds its stake in ITC through the Specified Undertaking of Unit Trust of India (SUUTI). This is a special fund which was created in 2003 after the bifurcation of erstwhile Unit Trust of India (UTI) with the government taking over all the guaranteed return schemes under SUUTI and the regular mutual fund schemes were transferred to what is now UTI Mutual Fund. In addition to its 11.12% stake in ITC that it held before this deal, the government also holds a 12% stake in private sector lender Axis Bank and 6.7% in construction and engineering major L&T. It also holds stakes in several other listed and unlisted companies together which was worth nearly Rs 5 lakh crore as of March 2016, its annual report for fiscal 2015-16 showed. Divestments of its stakes in SUUTI is part of the government's strategy to garner funds and the ITC stake sale was part of the same.
