ITC acquires shares of Sresta Natural Bioproducts Private Limited

Today, ITC Ltd has acquired the entire share capital (comprising 1,87,48,858 Equity Shares of Rs. 10/- each) of Sresta Natural Bioproducts Private Limited ('SNBPL'). Confirmation to this effect has been received by the Company today at 8:50 p.m.

Consequently, SNBPL has become a wholly owned subsidiary of the Company and its subsidiaries viz., Fyve Elements LLC, USA and Sresta Global FZE, UAE, have become step-down wholly owned subsidiaries of the Company with effect from 13th June, 2025.

In line with the strategy to augment the Company's future ready portfolio, the transaction is expected to fortify ITC's presence and market standing in the high growth organic products segment in both Indian and overseas markets.

The domestic organic food products industry offers significant opportunity of growth on the back of increasing health and environmental consciousness, rise in household incomes and new age distribution channels.

SNBPL is a pioneer and leading player in the organic packaged staples category. The company has over the years built a strong network of appx. 27,500 farmers and appx. 1.4 lakh acres of certified organic land across 71 clusters in 10 states. SNBPL has a wide range of products and enjoys strong brand equity and also a well-established presence in the US markets with its own distribution set-up.

The cost of acquisition is upfront consideration of Rs. 400 crores on a cash-free debt-free basis, subject to customary adjustments as set out in the Share Purchase Agreements. In addition, consideration of up to Rs. 72.50 crores is payable in the next 24 months.

SNBPL is primarily engaged in the business of manufacturing and selling organic food products under the '24 Mantra Organic' brand.

Shares of ITC Limited was last trading in BSE at Rs. 413.90 as compared to the previous close of Rs. 420.95. The total number of shares traded during the day was 937565 in over 10794 trades.

The stock hit an intraday high of Rs. 419.35 and intraday low of 413.65. The net turnover during the day was Rs. 390690921.00.

Source : Equity Bulls

Keywords

ITC INE154A01025 Acquisition SrestaNaturalBioproducts 24MantraOrganic