ITC shares surge in a weak market, trade near 52-weak high


Shares of ITC Ltd surged more than 2% in a weak market to 348 apiece on the BSE in Friday’s trading session, trading near its 52-week high level of 361.9 per share that it had hit in November 2022. On the other hand, the benchmark BSE Sensex declined over 800 points today, below the 60,000 mark. 

Earlier this month, the cigarette-to-hotel conglomerate announced plans to acquire D2C health food brand Yoga Bar, a health snack company based in Bengaluru. The FMCG major will acquire 100% of Sproutlife Foods Private Limited (SFPL) over a period of three to four years.

It will initially acquire a 47.5% stake in SFPL in tranches, by March 31, 2025 and the balance stake will be acquired, basis pre-defined valuation criteria, subject to other conditions agreed to in the binding documents. The purchase of the balance 52.5% shares taking the shareholding to 100 per cent would be determined based on pre-agreed valuation criteria and subject to fulfilment of various terms and conditions, it added.

The acquisition will enable ITC to augment its future-ready portfolio and enhance market presence in the ‘good for you’ space which currently includes Aashirvaad Multi-Grain Atta, Aashirvaad Nature’s Super Foods, Farmlite range of biscuits, Sunfeast Protein Shake, B Natural Nutrilite ABC Beverage, among others.

Established in 1910, ITC Limited is a diversified conglomerate with businesses spanning Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Education & Stationery Products, Incense Sticks and Safety Matches; Hotels, Paperboards and Packaging, Agri Business and Information Technology. ITC shares are up over 4% in a month, whereas the fast-moving consumer goods (FMCG) stock has gained more than 61% in a year’s period.

Diversified conglomerate ITC Ltd reported a nearly 21% rise in net profit for the quarter ending September 2022 to 4,466 crore, helped by the cigarettes, agri and its hotels businesses. The company is yet to announce its earnings for the third quarter ended December 2022.


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Article Source:Money Control

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