ITC‘s share price was flat in early trade on Tuesday as the company announced increasing its stake in a direct-to-consumer startup.
What Happened: The stock has been on an impressive rally since the start of the year. On a year-to-date basis, the stock is up over 36%. The company on Monday announced increasing its stake in Mother Sparsh.
ITC currently holds a 22% stake in the baby and maternity care products company. The company has now announced a Share Subscription Agreement to acquire 857 compulsorily convertible preference
shares of ₹10 each of Mother Sparsh.
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The 11.54 crore deal would see ITC’s stake in the company go up to 26.50. “This share acquisition is expected to be completed within 40 days from the date of execution of the agreements,” the tobacco-to-hotels giant said in a regulatory filing.
As per the filings, Mother Sparsh’s turnover for the year ended March 2023 stood at ₹48.41 crore – around 45% increase from the ₹33.53 crore reported in the previous year.
Price Action: ITC’s share price was down 0.31% to trade at ₹452.20 at market open on Tuesday.
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