ITC Increases Stake in Mother Sparsh to 39.47% with ₹50.6 Cr Investment

On 21st May 2025, ITC Limited disclosed a strategic development involving its increased investment in Mother Sparsh Baby Care Private Limited, a premium ayurvedic and natural personal care brand. This acquisition includes both equity shares and compulsorily convertible preference shares, signifying ITC’s growing interest in the booming baby care market in India. With this transaction, ITC’s shareholding has risen from 26.50% to 39.47% on a fully diluted basis.

ITC’s Strategic Move in the Personal Care Sector

The acquisition consists of 594 equity shares through secondary purchase and 2,201 compulsorily convertible preference shares via primary subscription, totalling a cash consideration of approximately ₹50.6 crores.

The transaction supports ITC’s strategy to create a portfolio of products aligned with evolving consumer demands. Mother Sparsh, founded on 5th February 2016, is known for its natural and ayurvedic baby care offerings, covering baby personal care, health & hygiene, and expert baby care. Its turnover has grown significantly over the past 3 years: ₹48.4 crores in FY 2022-23, ₹58.7 crores in FY 2023-24, and ₹99.6 crores in FY 2024-25. 

With operations confined to India, Mother Sparsh is well-placed in a sector witnessing rapid growth due to rising disposable incomes and heightened awareness of product safety for infants.

Read More: ITC Announces Dividend and Q4 FY25 Results Date.

Regulatory Compliance and Transactional Structure

According to the disclosure, the investment involved both a secondary share purchase and a primary capital infusion, the latter qualifying as a related party transaction since Mother Sparsh is an associate company. ITC confirmed that the transaction was conducted at ‘arm’s length’. Notably, ITC does not have a promoter or promoter group, and none of its group companies hold any interest in Mother Sparsh.

The entire consideration was in cash. The acquisition was completed on 21st May 2025, based on transaction documents executed on 17th April 2025. There were no governmental or regulatory approvals required for this acquisition.

ITC Share Performance 

As of May 22, 2025, at 11:00 AM, ITC share price is trading at ₹426.65 per share, reflecting a decline of 1.70% from the previous day's closing price. Over the past month, the stock has declined by 1.83%

Conclusion

Through this acquisition, ITC continues its expansion into high-potential consumer sectors, especially in personal care. Strengthening its stake in Mother Sparsh not only diversifies its portfolio but also aligns with consumer trends favouring safe, natural, and specialised baby care products. This move underscores ITC’s focus on long-term growth by backing scalable Indian start-ups that cater to emerging lifestyle needs.
 

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