ITC gains after acquiring stake in property maintenance & management firm

ITC rose 0.72% to Rs 315.80 at 09:54 IST on BSE, after the company announced acquisition of 87.06% equity share capital of Classic Infrastructure & Development for Rs 11.38 crore.

The announcement was made after market hours yesterday, 7 December 2015.

Meanwhile, the S&P BSE Sensex was down 43.65 points or 0.17% at 25,503.47

On BSE, so far 2.53 lakh shares were traded in the counter as against average daily volume of 4.84 lakh shares in the past one quarter.

The stock hit a high of Rs 317.60 and a low of Rs 311 so far during the day. The stock had hit a 52-week low of Rs 294.50 on 15 June 2015. The stock had hit a record high of Rs 409.70 on 28 February 2015.

The stock had underperformed the market over the past one month till 7 December 2015, falling 6.93% compared with 2.80% decline in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.1% as against Sensex's 2.56% rise.

The large-cap cigarette maker has equity capital of Rs 803.24 crore. Face value per share is Re 1.

ITC announced after market hours yesterday, 7 December 2015 that Greenacre Holdings (GHL) has acquired 87.06% of the equity share capital of Classic Infrastructure & Development (CIDL), an associate of Russell Credit (RCL), at an aggregate consideration of Rs 11.38 crore. GHL is a wholly owned subsidiary of RCL, which is a wholly owned subsidiary of ITC. CIDL having become a wholly owned subsidiary of GHL and also of RCL, has also become a wholly owned subsidiary of ITC with effect from 7 December 2015.

CIDL is engaged in the business of property maintenance & management and its networth as on 31 March 2015 and profit after tax for the year ended on that date were Rs 8.44 crore and Rs. 20.16 lakh, respectively, ITC said.

ITC's net profit rose 0.3% to Rs 2431.25 crore on 1.4% decline in net sales to Rs 8804.70 crore in Q2 September 2015 over Q2 September 2014.

ITC is a diversified company, with presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is a market leader in cigarettes.

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