ITC jumps on acquiring stake in Sproutlife Foods

ITC Ltd. | Cigarettes/Tobacco | FMCG | BSE: 500875 | NSE: ITC

05 May 2023 Evaluate

ITC is currently trading at Rs. 429.10, up by 4.60 points or 1.08% from its previous closing of Rs. 424.50 on the BSE.

The scrip opened at Rs. 424.55 and has touched a high and low of Rs. 431.90 and Rs. 424.20 respectively. So far 251185 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 431.90 on 05-May-2023 and a 52 week low of Rs. 249.20 on 12-May-2022.

Last one week high and low of the scrip stood at Rs. 431.90 and Rs. 421.25 respectively. The current market cap of the company is Rs. 533472.66 crore.

The Institutions and Non-Institutions held 85.47% and 14.54%, stake in the company respectively.

ITC has acquired 2,443 Equity Shares of Rs 10 each and 7,215 Compulsorily Convertible Preference Shares of Rs 10 each in Sproutlife Foods (Sproutlife) for an aggregate consideration of Rs 175 crore, on May 4, 2023. With the aforesaid acquisition, the company’s shareholding in Sproutlife aggregates 39.42% of its share capital on a fully diluted basis.

Earlier, the company had executed the transaction documents, including the Securities Subscription & Purchase Agreement and the Shareholders Agreement, to acquire 100% of the share capital (on a fully diluted basis) of Sproutlife Foods (Sproutlife), in one or more tranches, over a time period of three to four years.

ITC has business a interests in cigarettes, hotels, paperboards and specialty papers, packaging, agribusiness, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.