Shares of ITC rose around 1 per cent and hit a record high of Rs 522.45 on September 26, taking its market capitalisation past the Rs 6.5 lakh crore mark for the first time. Meanwhile, the hotels-to-FMCG conglomerate also increased its stake in Sproutlife Foods.
The preference shares of Sproutlife have been acquired pursuant to a follow-on investment in terms of the Securities Subscription & Purchase Agreement and the Shareholders Agreement executed on 19th April, 2023 to acquire 100 per cent of the share capital (on a fully diluted basis) of Sproutlife in one or more tranches.
With the acquisition of 1,413 CCPS, ITC’s shareholding in Sproutlife aggregates to around 47.50 per cent of its share capital at a total investment of Rs 255 crore.
“The acquisition is in line with the strategy to augment the Company’s future ready portfolio in the foods segment,” ITC said.
Sproutlife is a start-up engaged in the business of manufacturing and selling food products under the trademark ‘Yoga Bar’. It currently has high salience of on-line sales (D2C, e-commerce platforms etc.) with growing presence in offline stores.
ITC stock price has seen a gradual upmove as it has risen nearly 22 per cent in the past three months. The stock has gained over 12 per cent year-to-date (YTD), while it is up more than 17 per cent in the past one year.
ITC shares have yielded a multibagger return of 119 per cent in the last three years.
Earlier this year, ITC became the second-largest FMCG company in India by surpassing Britannia Industries. It is also one of the largest tobacco companies in the world.
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