This NIFTY50 stock hits 52-week high, market cap breaches ₹6.5 lakh crore mark for the first time; check details

Shares of the FMCG company gained as much as 0.94% to trade at a fresh year-high level of ₹522.45 apiece on the NSE.

The rally in the FMCG stock was seen after the company informed the stock exchanges via a filing about the completion of Sproutlife Foods Private Limited's acquisition on September 25. The company said that it acquired 1,413 Compulsorily Convertible Preference Shares (CCPS) of Sproutlife Foods for ₹30 crore. The acquisition is a part of the deal signed in 2023.

ITC said that the acquisition is in line with the company’s strategy to augment its future ready portfolio in the food segment. The FMCG company added that the acquisition of CCPS is a part of the agreement executed between the two companies on April 19, 2023, under which ITC will acquire 100% of the share capital (on a fully diluted basis) of Sproutlife in one or more tranches.

With the latest acquisition, the company’s stake in Sproutlife totals 47.5% of its total share capital. According to the filing, ITC has invested ₹255 crore in the company.

Sproutlife manufactures and sells food products under the Yoga Bar brand. The company currently operates via the direct-to-customer (D2C) model, e-commerce platforms, and offline stores.

ITC shares have gained over 17% in the past year while giving Year-To-Date (YTD) returns of more than 12%. In the past six months, the stock has climbed over 21%, and in the last month, it has gained over 2%.

ITC Limited stock was trading at ₹521.15 apiece, up by 0.70%, on the NSE at 12:15 pm.