ITC Ltd to increase stake in Mother Sparsh

ITC Ltd has entered into an agreement to acquire further 1000 Compulsorily Convertible Preference Shares of ₹ 10/- each of Mother Sparsh. The said shares, once acquired, will take the Company's shareholding in Mother Sparsh to 22% (on a fully diluted basis).

The current shareholding of the Company in Mother Sparsh is 16% (on a fully diluted basis).

The Company has executed (i) a Share Subscription Agreement on 18th October, 2022 to acquire 1000 Compulsorily Convertible Preference Shares of ₹ 10/- each of Mother Sparsh, subject to completion of conditions precedent; and (ii) an Amended and Restated Shareholders' Agreement in connection with such proposed acquisition.

Upon completion of the aforesaid acquisition, the Company's shareholding in Mother Sparsh would aggregate 22% of its share capital (on a fully diluted basis).

The said acquisition is in line with the Company's continued interest in the fast growing direct to consumer (D2C) space in the 'personal care' category.

Mother Sparsh is a premium ayurvedic and natural personal care start-up in the D2C space, with focus on mother and baby care segments.

Shares of ITC Limited was last trading in BSE at Rs. 340.25 as compared to the previous close of Rs. 332.30. The total number of shares traded during the day was 682934 in over 12459 trades.

The stock hit an intraday high of Rs. 341.00 and intraday low of 333.00. The net turnover during the day was Rs. 231405603.00.

Source : Equity Bulls

Keywords

ITC INE154A01025 Agreement StakeIncrease Acquisition MotherSparsh