On Friday, shares of ITC settled 2.20 per cent lower at Rs 218 apiece on the BSE.Fast-moving consumer goods (FMCG) major ITC Limited announced on Saturday that it has bought 8.70 per cent equity stake in Mother Sparsh Baby Care - a D2C Ayurvedic and natural personal care brand.
The acquisition is in accordance with ITC's announcement made last month, when the company had said to acquire a 16 per cent stake in Mother Sparsh through a share subscription agreement."The company has acquired on December 17, 2021, in the first tranche, 100 equity shares of Rs 10 each and 940 Compulsorily Convertible Preference Shares of Rs 10 each of Mother Sparsh Baby Care Pvt Ltd, representing 8.70 per cent of its share capital on a fully diluted basis," said ITC in a regulatory filing to the stock exchanges today.Mother Sparsh is a premium Ayurvedic and natural personal care start-up in the D2C space, focusing on the mother and baby care segment.
The acquisition is to be completed in two tranches, ITC had said earlier on November 26.Mother Sparsh Baby Care Private Limited or 'Mother Sparsh' is a range of baby and mother care products.
ITI Capital acted as a financial advisor to Mother Sparsh for the fund-raising process.
Incorporated on February 5, 2016, the company had reported a turnover of Rs 15.44 crore in the financial year 2020-21.Mother Sparsh plans to deploy the funds -- raised in its Series A funding round-- towards the enhancement of its research and development initiatives, digital capabilities, and driving new product launches.On Friday, December 17, shares of ITC settled 2.20 per cent lower at Rs 218 apiece on the BSE.