ITC Raises Stake In Delectable Technologies To 27%

Fast-moving consumer goods (FMCG) major ITC Limited raised its holding to 27.34 per cent in Delectable Technologies - which operates the Azgo app and vending machines selling snacks and other fast-moving consumer goods.

On December 20, ITC acquired 1,964 Compulsorily Convertible Preference Shares of Rs 10 each of Delectable Technologies in the third tranche, according to a regulatory filing by the company to the stock exchanges on Tuesday.

With the acquisition, the company's shareholding in Delectable aggregates 27.34 per cent of its share capital on a fully diluted basis, the company said.

Two years ago, ITC Ltd had agreed to acquire a stake of up to 33.42 per cent in Delectable Technologies Pvt Ltd. It announced that it will pay up to Rs 7.50 crore in four tranches. The company had said that the deal will strengthen the presence of its FMCG products in the emerging distribution channel of vending machines. 

On Tuesday, December 22, shares of ITC settled 0.12 per cent higher at Rs 212.55 apiece on the BSE. ITC opened on the BSE at Rs 214, registering an intra day high of Rs 215.45 and an intra day low of Rs 211.10, throughout the trading session yesterday.

Few days ago, ITC had announced that it had bought an 8.70 per cent equity stake in Mother Sparsh Baby Care - a D2C Ayurvedic and natural personal care brand. The acquisition was 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.

Mother Sparsh is a premium Ayurvedic and natural personal care start-up in the D2C space, focusing on the mother and baby care segment.