This deal involves the purchase of 1.87 crore equity shares, making SNBPL a wholly owned subsidiary of ITC. Additionally, SNBPL’s subsidiaries—Fyve Elements LLC in the US and Sresta Global FZE in the UAE—will also become step-down wholly owned subsidiaries of ITC, effective June 13, 2025.
Founded as a leader in the organic packaged staples market, SNBPL operates under the ‘24 Mantra Organic’ brand. The company has established a network of approximately 27,500 farmers who cultivate around 1.4 lakh acres of certified organic land across 71 clusters in 10 states in India.
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ITC stated that this acquisition is in line with its strategy to bolster a future-ready food portfolio and enhance its presence in both Indian and international organic markets. SNBPL boasts a robust distribution network in the US and offers a diverse product range with strong brand recognition.
The acquisition was carried out on a cash-free, debt-free basis, involving an upfront payment of ₹400 crore and a potential additional payout of up to ₹72.5 crore over the next 24 months, contingent upon agreed terms. This transaction does not constitute a related party transaction, and ITC has affirmed that the acquired entity complements its primary operations in the food sector.
As for the stock performance, shares of ITC Ltd closed at ₹413.90, a decrease of ₹7.05, or 1.67%, on the BSE.
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