ITC Share Price in Focus as Company Sells 39.32% Stake in Delectable Technologies

ITC Limited shares were trading at ₹429, up 0.26% or ₹1.10 from the previous close of ₹427.90. The stock opened slightly lower at ₹427.10 but quickly gained momentum to hit an intraday high of ₹431.85, while the day’s low stood at ₹427.

ITC Offloads Minority Stake in DTPL

ITC Ltd. has sold its minority stake in its food tech subsidiary, Delectable Technologies Private Limited (DTPL). The divestment involved the transfer of 7,759 Compulsorily Convertible Preference Shares and 2,386 Equity Shares together representing 39.32% of DTPL's paid-up share capital on a fully diluted basis. The transaction was completed via share transfer deeds on May 13, 2025.

Why the Exit?

The decision to offload the stake appears strategic, as DTPL contributed just ₹4.8 crore in revenue for FY24, amounting to a minuscule 0.007% of ITC’s total revenue for the same period. Moreover, DTPL's net worth stood at ₹3.2 crore, or 0.005% of ITC's net worth, indicating its immaterial impact on the parent company's overall financials.

It’s also worth noting that DTPL had significantly downsised operations during FY25, which likely factored into the company’s decision to exit.

Read More: What Are the ITC Businesses That Make It Unique?

Buyer and Consideration

The buyer of the stake is Mr. Satvik Sarwade, the founder of DTPL. The deal does not fall under the category of related-party transactions, and ITC has clarified that the company has no promoter group. The transaction fetched a nominal aggregate consideration of ₹1,01,450, indicating it was executed at face value.

Regulatory Disclosures

• The sale does not fall under a related party transaction.
• The deal is outside any Scheme of Arrangement.
• Compliance with Regulation 37A of LODR is not applicable.
• The transaction does not qualify as a slump sale, so additional disclosures for amalgamations/mergers are not required.

Conclusion

ITC’s exit from DTPL underscores its capital allocation discipline and focus on scalable, high-growth businesses. While the quantum of the deal is negligible, it signals the company’s ongoing efforts to streamline operations and focus on segments delivering stronger returns.

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