Diversified conglomerate ITC Ltd on Saturday said that it has acquired 100 equity shares of ₹10 each and 940 compulsorily convertible preference shares of ₹10 each of Mother Sparsh Baby Care in the first tranche. This represents 8.70 per cent of its share capital on a fully diluted basis.
The company had, in end November said that it would pick up 16 per cent stake in Mother Sparsh, which is a premium ayurvedic and natural personal care D2C brand for ₹20 crore. The all-cash deal was to be completed in two tranches within the next eight months. The investment would include 100 equity shares and 1,980 compulsorily convertible preference shares.
Incorporated in February 2016, Mother Sparsh focuses on the mother and baby care segment. In FY-21, the company had reported a turnover of ₹15.44 crore, while revenues for FY-20 stood at ₹3.36 crore.
Explaining the rationale behind the acquisition ITC had earlier said that it would enable access to the fast growing D2C space in the personal care category, which the company had identified as “an area of interest”.