ITC to acquire further 6% stake in Mother Sparsh

19 Oct 2022 , 09:27 AM

ITC Limited informed that it has entered into an agreement to acquire a further 1,000 Compulsorily Convertible Preference Shares of Rs10 each of Mother Sparsh. Following the acquisition of the said shares, the company’s shareholding in Mother Sparsh will increase to 22% (on a fully diluted basis).

Company’s current shareholding in Mother Sparsh is 16% (on a fully diluted basis).

The company stated in its filing on Tuesday, “On October 18, 2022, the Company executed a Share Subscription Agreement to acquire 1000 Compulsorily Convertible Preference Shares of Rs10 each of Mother Sparsh, subject to the completion of conditions precedent; and (ii) an Amended and Restated Shareholders' Agreement in connection with the proposed acquisition.”

The purchase is consistent with the Company's ongoing focus in the rapidly developing direct-to-consumer (D2C) area in the 'personal care' category.

Total consideration payable by the company for such an acquisition is Rs13.50 crore.

Mother Sparsh is a D2C premium Ayurveda and natural personal care start-up focused on the mother and infant care segments.

At around 9.26 AM, ITC Ltd was trading at Rs342.05 up by 0.53% from its previous closing of Rs340.25 on the BSE. The scrip opened at Rs343.80 and touched intraday high and low of Rs343.80 and Rs340.70 respectively.

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