A buyback has not been possible at ITC because of tussle between BAT and government. Now, BAT stake sell is the primary reason for buyback being a possibility. Plus. It won’t be just BAT but all stakeholders benefitting.
BAT, still has a board representation, will they really agree to a buyback post their stake sale when they have nothing to gain?
ITC is not exactly a fast growing company that goes about with organic/inorganic growth. Most businesses are now generating huge free cash. I doubt if ITC has any plans to enter a new Business field requiring cash, although I wish they enter hospitals or green hydrogen. Buybacks are better for everyone as it reduces float, Raises share price, and improves returns per share in the longer run. ESOPS are not going to be revised anytime soon. A similar reason has made TCS and Infosys darlings of investors as they do buybacks regularly.
