New Delhi, Jan. 2 -- It has not been a happy New Year for ITC shareholders. The cigarettes-to-FMCG conglomerate has seen its stock tumble 14% in two days to its lowest level in three years, hurt by the government's announcement of a steep hike in the excise duty on tobacco products. This has resulted in the overall wealth evaporation of nearly Rs.72,300 crore for ITC shareholders.

Given Life Insurance Corporation of India (LIC) is a major shareholder in the company, holding 1,98,58,07,233 shares or a 15.86% stake as of the September quarter, the ITC share price crash has resulted in a steep over Rs.11,460 crore loss for India's biggest domestic institutional investor (DII) in two days.

ITC's stock price recorded its worst one-day fall i...