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.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on September 18, 2020
This article is closed for comments.
Please Email the Editor