ITC moves north after divestment in US subsidiary

ITC rose 0.69% to Rs 240.80 at 14:15 IST on BSE after the company said it has approved divestment of the company's entire shareholding in its US subsidiary for a consideration of about $24 million.

The announcement was made on Sunday, 9 October 2016.

Meanwhile, the S&P BSE Sensex was up 58.69 points or 0.21% at 28,119.83.

On BSE, so far 2.18 lakh shares were traded in the counter as against average daily volume of 9.24 lakh shares in the past one quarter. The stock hit a high of Rs 242.75 and a low of Rs 240.55 so far during the day. The stock had hit a 52-week high of Rs 266 on 8 September 2016. The stock had hit a 52-week low of Rs 178.67 on 29 February 2016. The stock had underperformed the market over the past one month till 7 October 2016, sliding 8.62% compared with 2.99% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 2.98% as against Sensex's 3.16% rise.

The large-cap company has equity capital of Rs 1211.16 crore. Face value per share is Rs 1.

ITC's corporate management committee approved divestment of the company's entire shareholding (204 shares of common stock with no par value) in King Maker Marketing Inc, US, a wholly-owned subsidiary, along with assignment of certain trademarks owned by the company. The consideration to be received is estimated around $24 million in terms of the share purchase agreement and subject to regulatory approvals and customary closing conditions, ITC said. The buyer in the transaction is Premier Manufacturing, Inc., USA, it added.

ITC's net profit rose 10.1% to Rs 2384.67 crore on 9.7% growth in net sales to Rs 9957.66 crore in Q1 June 2016 over Q1 June 2015.

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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