ITC shares in focus after Rs 472 crore acquisition of Sresta Natural Bioproducts

Shares of ITC are likely to be in focus on Monday, June 16, 2025, after the company announced the completion of its acquisition of Sresta Natural Bioproducts Private Ltd (SNBPL) for a total consideration of up to Rs 472.5 crore.

According to the company’s filing, ITC has acquired the entire share capital of SNBPL, comprising 1,87,48,858 equity shares of Rs 10 each. The acquisition was made for an upfront cash consideration of Rs 400 crore on a cash-free, debt-free basis, subject to customary adjustments.

Additionally, ITC may pay up to Rs 72.5 crore over the next 24 months, contingent on specific terms outlined in the Share Purchase Agreement.

With this transaction, SNBPL has become a wholly owned subsidiary of ITC. Furthermore, SNBPL’s overseas subsidiaries—Fyve Elements LLC (USA) and Sresta Global FZE (UAE)—have now become step-down wholly owned subsidiaries of ITC, effective June 13, 2025.

The transaction was concluded on June 13, 2025, the company stated.

SNBPL is primarily engaged in the manufacturing and sale of organic food products under the brand ‘24 Mantra Organic’. The company operates across India and has developed a substantial organic value chain.

It has a network of approximately 27,500 farmers and manages around 1.4 lakh acres of certified organic farmland spread across 71 clusters in 10 Indian states. In addition to its domestic market, SNBPL also has a presence in the US with its own distribution infrastructure.

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Founded on March 9, 2004, SNBPL has consistently reported a consolidated turnover of over Rs 300 crore in each of the last three financial years. For FY2023–24, the company posted a turnover of Rs 306.1 crore, compared to Rs 327.3 crore in FY2022–23 and Rs 326.7 crore in FY2021–22.

ITC stated in its disclosure that the acquisition aligns with the company’s strategy to augment its future-ready portfolio. The move is expected to strengthen ITC’s presence in the high-growth organic products segment, both in India and international markets.

The company also highlighted that the domestic organic food products sector holds significant growth potential, driven by increasing health consciousness, rising household incomes, and the growing reach of modern trade and e-commerce channels.

ITC shares closed 1.7% lower at Rs 413.90 on the BSE on Friday.

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