ITC Raises Stake in Mother Sparsh to 39.47%
By Ankur Chandra | Updated at: May 31, 2025 10:45 PM IST
FMCG major ITC Ltd has increased its equity stake in premium ayurvedic baby care brand Mother Sparsh Baby Care Private Limited to 39.47% on a fully diluted basis, following a fresh investment of approximately ₹50.6 crore.
Summary of Key Transaction Details
| Particulars | Details |
|---|---|
| Shares Acquired | 594 Equity + 2,201 compulsorily convertible preference shares (CCPS) |
| Post-acquisition Stake | 39.47% (from 26.50%) |
| Total Consideration | Approx. ₹50.6 crore |
| Mode of Consideration | Cash |
| Industry | Personal Care (Baby & Hygiene) |
| Type of Transaction | Related Party (Associate Company) |
| Country of Operations | India |
Deal Structure & Valuation
The latest acquisition comprises:
- 594 equity shares acquired via secondary purchase, and
- 2,201 compulsorily convertible preference shares (CCPS) subscribed through a primary infusion.
This transaction was completed today, May 21, 2025, as per agreements signed on April 17, 2025. The deal was executed fully in cash and qualifies as a related party transaction, considering ITC already held a prior stake of 26.50% in the company.
Management Commentary
ITC stated the investment aligns with its strategy to build a future-ready portfolio focused on consumer well-being and evolving preferences. Mother Sparsh is positioned as a natural and ayurvedic personal care startup, with emphasis on baby care, hygiene, and health. “This acquisition strengthens our presence in the fast-growing baby care segment. Mother Sparsh’s premium, ayurvedic positioning complements ITC’s aspiration to build purpose-driven brands,” the company noted in its disclosure.
Future Outlook
The Indian baby care market is witnessing robust growth, backed by rising disposable income and increasing awareness around safe and natural personal care products. With this move, ITC continues to deepen its play in the high-growth, wellness-focused personal care category. This also marks a further shift in ITC’s strategy beyond its traditional tobacco-led portfolio, in line with its ambitions to scale up its FMCG segment to be a key growth engine.
Stock Performance
Shares of ITC Ltd have witnessed a 0.55% dip in the last year, a 10.65 dip in YTD, and a 2.26% gain in the last month.
About ITC Ltd
ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata. It operates in six business sectors, including FMCG, agribusiness, IT, paper products, and packaging. It derives a majority of its sales from tobacco.
Source: https://nsearchives.nseindia.com/corporate/ITC_21052025195949_SE_Mothersparsh_.pdf
