ITC Limited plans to keep foods prices steady through the festive season despite surging sugar, edible oils, coffee, cocoa and packaging costs, with Foods Division CEO Hemant Malik saying cost-management and portfolio actions have offset much of the inflation, while flagging possible price corrections in quarter three or four if costs stay high.

ITC Limited is among more than 150 food and beverage makers that received FSSAI notices over incorrect and misleading labelling claims about ingredients and labelling non-compliances, as the regulator pushes enforcement and front-of-pack labelling.

ITC is among the leading FMCG companies evaluating a significant stake purchase in healthy snacking brand Farmley, which could value Farmley at Rs 2,000 crore, with preliminary bids due at October end.

ITC Limited surged 5% to Rs 266.90 in intraday trade after GQG Partners entities sold 365 million shares, or 2.91% equity, at Rs 257.35 apiece for Rs 9,395.40 crore, with Alliance Witan PLC also selling a 0.01% stake. Large buyers included Fidelity Advisor Overseas Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Nippon India Mutual Fund and Citigroup Global Markets Singapore Pte. Citi upgraded ITC Limited to BUY from SELL with a Rs 300 target, while Kotak Institutional Equities cited a Rs 360 sum-of-the-parts valuation.

ITC Ltd shares fell about 3% to Rs257.45 after 366.7 million shares representing 2.93% of its equity changed hands in a single large trade, with buyers and sellers not immediately known.