ITC surges on entering into agreement to acquire 100% stake in Sunrise Foods

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

26 May 2020 Evaluate

ITC is currently trading at Rs. 192.60, up by 6.25 points or 3.35% from its previous closing of Rs. 186.35 on the BSE.

The scrip opened at Rs. 190.20 and has touched a high and low of Rs. 194.95 and Rs. 189.50 respectively. So far 323440 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 293.55 on 27-May-2019 and a 52 week low of Rs. 134.95 on 13-Mar-2020.

Last one week high and low of the scrip stood at Rs. 194.95 and Rs. 163.15 respectively. The current market cap of the company is Rs. 229065.73 crore.

The Institutions and Non-Institutions held 57.11% and 42.89% stake respectively in the company.

ITC has entered into a Share Purchase Agreement (SPA) to acquire 100% of the equity share capital of Sunrise Foods, an Indian company primarily engaged in the business of spices under the trademark 'Sunrise', subject to fulfilment of various terms and conditions as specified in the SPA.

The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG Businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how. The proposed acquisition will augment the company’s product portfolio and is aligned to ITC’s aspiration to significantly scale up its Spices business and expand its footprint across the country.

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