ITCNSEITC Limited· CigarettesMediumPositive
Announced Wed, 21 May · 20:00 IST

ITC Limited has informed the Exchange about Acquisition of shares of Mother Sparsh Baby Care Private Limited.

Listed Co AcquisitionStrategic Transactions View source PDF

ITC · price

Loading chart…

▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

ITC Limited has increased its stake in Mother Sparsh Baby Care Private Limited from 26.50% to 39.47% (on a fully diluted basis) for an aggregate consideration of approximately ₹50.6 crores. The acquisition comprises 594 equity shares bought from an existing shareholder and 2,201 compulsorily convertible preference shares subscribed through primary infusion, all in cash. Mother Sparsh is a premium ayurvedic and natural personal care startup focused on baby care, health and hygiene, with revenue growing from ₹48.4 crores in FY23 to ₹99.6 crores in FY25. The transaction is classified as a related party transaction since Mother Sparsh is an existing associate company of ITC, and was carried out at arm's length.

Likely market impact

This is a strategic deepening of ITC's play in the fast-growing natural and ayurvedic baby care segment, complementing its FMCG portfolio. The strong revenue growth shown by Mother Sparsh suggests the investment could be value-accretive over time, though ITC is still a minority shareholder (below 50%), so it will be accounted for as an associate.