Companies

ITC buys 2nd tranche of shares in Delectable

Kolkata | Updated on September 18, 2020 Published on September 18, 2020

FMCG major ITC Ltd has acquired a second tranche of shares in start-up Delectable Technologies, amounting to a 20.06 per cent stake. The second tranche was acquired on September 17.

Bengaluru-based Delectable is engaged in fabricating vending machines and app-based sales of FMCG products through such machines.

Last November, ITC had announced plans to pick up a 33.42 per cent stake in the start-up. The all-cash deal would see ITC pay “a maximum of ₹7.50 crore in four tranches over a period of 12 months”, it had said.

In a stock market notification on Friday, ITC said it had acquired “the second tranche, 1,964 compulsorily convertible preference shares of ₹10 each, of Delectable”.

The first tranche, representing 11.15 per cent of the share capital, was acquired in December. This included 100 equity shares of ₹10 each and 1,864 compulsorily convertible preference shares of ₹10 in Delectable.

Market sources say the acquisition is expected to strengthen the presence of ITC’s FMCG products in the emerging distribution channel of vending machines and will help them explore on-the-go (distribution) channels.

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Published on September 18, 2020
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