ITC board approves amalgamation of subsidiaries

The Board of Directors of the Company at the meeting held on 4th September, 2020, approved amalgamation of Sunrise Foods Private Limited (SFPL), Hobbits International Foods Private Limited (HIFPL) and Sunrise Sheetgrah Private Limited (SSPL) with the Company.

The Schemes of amalgamation, which are subject to approvals as necessary, will take effect from 27th July, 2020.

SFPL is engaged mainly in the business of spices under the trademark 'Sunrise'. HIFPL and SSPL are engaged in activities which are ancillary and incidental to the main business operations of SFPL.

ITC is a multi-business corporation involved in several business segments, including Fast-Moving Consumer Goods ('FMCG'), Hotels, Paperboards & Packaging and Agri Business.

SFPL, HIFPL and SSPL, being wholly owned subsidiaries, are related parties of ITC. Accordingly, the transfer of all assets, liabilities, rights and obligations, as well as transfer of employees, of SFPL, HIFPL and SSPL to ITC will be done at arm's length.

The amalgamation of SFPL with ITC will augment ITC's product portfolio and is aligned with its aspiration to significantly scale up the spices business and expand its footprint across the country. The deep consumer connect of SFPL in the focus markets, together with synergies arising out ofITC's pan-India distribution network and the sourcing and supply chain capabilities of lTC's Agri Business will provide significant value creation opportunities for the combined business.

The amalgamation of HIFPL and SSPL with ITC will help in rationalising multiple entities to ensure optimal business structure. The said amalgamation will also reduce replication of administrative processes and lead to optimum utilisation of resources.

Since SFPL, HIFPL and SSPL are wholly owned subsidiaries of ITC, all equity shares issued by the Transferor Companies shall stand cancelled and extinguished and fTC will not be required to issue any fresh shares.

Shares of ITC LTD. was last trading in BSE at Rs.186.65 as compared to the previous close of Rs. 191.65. The total number of shares traded during the day was 2826218 in over 39308 trades.

The stock hit an intraday high of Rs. 190 and intraday low of 185.75. The net turnover during the day was Rs. 530910469.

Source : Equity Bulls

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