ITC Raises Stake to 26.5% in Ayurvedic Baby Care Brand for Rs 11.5 Crore
By Malvika Gurung
Investing.com — The hotels-to-consumer goods conglomerate ITC Ltd (NS:) has signed agreements to acquire an additional stake for a cost of Rs 11.54 crore in the Ayurvedic and natural personal care startup Mother Sparsh Baby Care.
ITC has entered into definitive agreements to acquire 857 Compulsorily Convertible Preference Shares of Rs 10 each of Mother Sparsh, which will increase its shareholding percentage in the company from 22% to 26.5%, on a fully diluted basis.
The additional share acquisition will be done at ‘arm’s length’, and is expected to be completed within 40 days from the date of execution of the said agreements.
The cost of the acquisition stands approximately at Rs 11.54 crore.
Mother Sparsh is a premium ayurvedic and natural personal care start-up in the D2C space, with a focus on the mother and baby care segments. It belongs to the personal care industry.
India’s sixth most valuable company by market capitalization ITC is looking to bolster its presence in the fast-growing Direct to Consumer (D2C) space in the ‘personal care’ category, and the aforementioned additional acquisition in Mother Sparsh is in line with the conglomerate’s plans.
