ITC has a "sunrise"

On 23rd May, 2020 ITC entered into a Share Purchase Agreement (‘SPA’) to acquire 100% of the equity share capital of Sunrise Foods Private Limited, an Indian company primarily engaged in the business of spices under the trademark ‘Sunrise’.

Sunrise is a clear market leader in eastern India in the fast-growing Spices category with a rich heritage and brand legacy of over 70 years. The proposed acquisition is aligned with ITC’s strategy to rapidly scale up its FMCG Businesses.

Though the company did not officially divulge any financial details of this acquisition, the deal is said to be valued at around Rs.2000 crore.

The market is happy with this news and the stock price has reacted accordingly, and it rose over 4.5% to hit an intraday high at Rs.194.95. Its 10% UC for the day is at Rs.204.95.