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ITC Picks Up 8.70% Stake In Mother Sparsh Baby Care. Should You Buy The Stock?

ITC has acquired on December 17, 2021, in the first tranche, 100 equity shares of Rs 10 each and 940 Compulsorily Convertible Preference Shares of Rs 10 each of Mother Sparsh Baby Care.

Diversified firm ITC Ltd on Saturday said it has bought  8.70 per cent equity stake in Mother Sparsh Baby Care, a D2C Ayurvedic and natural personal care brand.

 This acquisition is pursuant to ITC's announcement made on November 26, where the Kolkata-headquartered firm had said to acquire a 16 per cent stake in Mother Sparsh through a share subscription agreement.

"The company has acquired on December 17, 2021, in the first tranche, 100 equity shares of Rs 10 each and 940 Compulsorily Convertible Preference Shares of Rs 10 each of Mother Sparsh Baby Care Pvt Ltd, representing 8.70 per cent of its share capital on a fully diluted basis," ITC said in a regulatory filing.

Mother Sparsh is a premium Ayurvedic and natural personal care start-up in the D2C space, focusing on the mother and baby care segment.

The acquisition is to be completed in two tranches, ITC had said earlier on November 26.

Mother Sparsh, which was incorporated on February 5, 2016, had reported a turnover of Rs 15.44 crore in FY2020-21.

On 9 December, the shares of ITC Limited rose more than 5 per cent after the consumer goods company on Thursday informed investors about conducting 'Institutional Investors and Finance Analysts Day' on December 14. 

The company's stock closed 4.60 per cent higher at Rs 235.30 on the BSE. On the NSE, it closed 4.91 per higher at Rs 236.00.

The stock had scaled an intra-day high of Rs 236.50 on the BSE, which is a 5.13 per cent rise over its previous close. 

Now, considering this latest development by ITC, many investors must be planning to buy ITC shares, but they might nkt know whether to buy or not.

In the meantime, some analysts have given a price target to the ITCshares. Check below

Centrum Broking

The brokerage house has given a buy call on ITC with a target price of Rs 345. The current market price of ITC Ltd. is Rs 218.10 Time given by analyst is one year when ITC Ltd price can reach a defined target, a report in The Economic Times said.

HDFC Securities

Last month, HDFC Securities gave a buy call on ITCwith a target price of Rs 272. The current market price of ITC Ltd. is Rs 218.10 Time period given by the analyst is one year when the ITC price can reach a defined target, the report added.

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