The shares of the market leader in the Indian Paperboard and Packaging industry gained up to 1.3 percent after the company’s subsidiary acquiring 100% of the share capital of Blazeclan Technologies Private Limited worth Rs 485 crore.
With a market capitalization of Rs 5.26 lakh crore, the shares of ITC Ltd were trading at Rs 422.00 per share, increasing around 1 percent as compared to the previous closing price of Rs 418.95 apiece.
According to the company filing, Infotech India, a fully owned subsidiary of ITC Ltd, has signed a share purchase agreement to acquire 100% of the share capital of cloud services provider Blazeclan Technologies for Rs 485 crore. The anticipated transaction will be completed within 6 to 8 weeks.
Moreover, The acquisition is expected to strengthen ITC Infotech’s commitment to helping clients navigate their digital transformation journey and deliver business outcomes built on the foundation of strong Cloud capabilities.
Furthermore, Blazeclan is a born-in-the-cloud consulting company providing cloud services on AWS, Azure, and GCP, and has been recognized as a Niche Player in the 2023 Gartner Magic Quadrant for Public Cloud IT Transformation Services.
Looking into ITC Ltd’s financials, the revenue increased by 2 percent, from Rs 17,705 crore in Q3 FY23 to Rs 18,019 crore in Q3 FY24. During the same period, net profit increased by 6 percent, from Rs 5,080 crore to Rs 5,407 crore.
In FY24, ITC intends to devote 35 to 40 percent of its capital expenditure (capex) to developing a large, future-ready non-cigarette FMCG business, and the conglomerate’s total capex across segments averages more than Rs. 3000 crores per year, with a sizable portion directed toward the non-cigarette FMCG business.
ITC Limited engages in fast-moving consumer goods (FMCG), hotels, paperboards, paper and packaging, and agricultural businesses. The FMCG industry includes cigarettes, cigars, education and stationery items, personal care products, safety matches and agarbattis, and branded packaged foods enterprises, among others.
Written by:- Abhishek Singh
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