Diversified ITC Ltd said Saturday that it has acquired 100 shares of stock worth $10 each and 940 compulsory convertible preference shares worth ₹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, at the end of November, said it would acquire a 16 per cent stake in Mother Sparsh, a D2C brand of Ayurvedic and natural personal care, for Rs 20 crore. The entire cash transaction was scheduled to be completed in two tranches over the next eight months. The investment will include 100 shares of stock and 1,980 compulsory convertible preferred stock.

Founded in February 2016, Mother Sparsh focuses on the mother and child care sector. In the financial year 21, the company reported a turnover of Rs 15.44 crore while the revenue for the fiscal year was Rs 20, Rs 3.36 crore.

Explaining the rationale behind the acquisition, ITC previously said it would gain access to the fast-growing D2C space in the personal care category, which the company has identified as an “area of ​​interest.”

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