ITC purchases 8.70% of Mother Sparsh Baby Care's shares

28 Jun 2023 , 12:17 PM

ITC Ltd., a diversified conglomerate, announced on Saturday that it had purchased Mother Sparsh Baby Care’s first tranche of 940 compulsorily convertible preference shares at a price of 10 and 100 equity shares at a price of 10 apiece. When completely diluted, this represents 8.70% of its share capital.

End of November, the business announced that it would pay 20 crore for a 16 percent ownership in Mother Sparsh, a high-end ayurvedic and natural personal care brand. 

Within the following eight months, two tranches of the all-cash transaction were to be completed. The investment would consist of 1,980 compulsorily convertible preference shares and 100 equity shares.

Mother Sparsh, a company that was founded in February 2016, specializes in mother and newborn care. The company generated revenues of 3.36 crore for FY-20 and a turnover of 15.44 crore for FY-21.

ITC had stated that the acquisition will give access to the quickly expanding D2C market in the personal care category, which the company had identified as ‘an area of interest.’

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