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FMCG maker ITC Ltd will pick up a 33.42 per cent stake in Bengaluru-based start-up Delectable Technologies Pvt Ltd, a vending machine maker. The all-cash deal will see ITC pay “a maximum of ₹7.50 crore in four tranches over a period of 12 months”.
According to stock market notification, the acquisition is subject to completion of agreed conditions precedent and milestones.
“ITC has agreed to acquire in four tranches up to 33.42 per cent of the share capital of Delectable on a fully diluted basis,” it said.
Delectable is engaged in fabricating vending machines and app-based sale of FMCG products through such machines. The company had a net worth of ₹1.48 crore as on March 31, 2019. It had a turnover of ₹69.15 lakh in FY19.
Market sources say the acquisition is expected to strengthen presence of ITC’s FMCG products in the emerging distribution channel of vending machines. In fact, the move will help ITC explore on-the-go distribution channels.
The ITC stock closed at ₹253.95, down by 2.08 per cent, at the BSE, on Wednesday.
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