This FMCG giant outperformed in a falling market!

Domestic equity bourses suffered deep cuts in today's trading session.

On May 4, 2023, ITC Ltd acquired 2,443 Equity Shares of Rs 10 each and 7,215 Compulsorily Convertible Preference Shares of Rs 10 each in Sproutlife Foods (Sproutlife) for an aggregate consideration of Rs 175 crore. With the aforesaid acquisition, the company’s shareholding in Sproutlife aggregates 39.42% of its share capital on a fully diluted basis.

Earlier, the company had executed the transaction documents, including the Securities Subscription & Purchase Agreement and the Shareholders Agreement, to acquire 100% of the share capital (on a fully diluted basis) of Sproutlife Foods (Sproutlife), in one or more tranches, over three to four years.

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ITC is currently trading at Rs 428.95 on the BSE, up by 4.80 points or 1.13 per cent from its previous close of Rs 424.50. The stock began trading at Rs 4224.55 and has since reached highs and lows of Rs 431.90 and Rs 424.20, respectively. Thus far, 2,75,844 shares have been exchanged on the exchange. 

The company's current market capitalization is Rs 5,32,975.54 crore. Currently, shares of ITC are trading at a P/B of 8.05x, and a P/E of 29.3x. ROE of 24.8 per cent and ROCE of 33.6 per cent, respectively.

ITC has business interests in cigarettes, hotels, paperboards and specialty papers, packaging, agribusiness, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches, and other FMCG products.