ITC stock gains on acquisition of compulsorily convertible preference shares of Mother Sparsh

ITC share price NSE: The company, whose popular cigarette brands include Classic, Gold Flake, Insignia, American Club, India Kings, and Wills Navy Cut, has acquired 857 compulsorily convertible preference shares of Rs 10 each of Mother Sparsh at a consideration of Rs 11.54 crore.

ITC share price NSE: Shares of cigarettes-to-hotels conglomerate ITC rose over 1 per cent on Wednesday. Image: Reuters

ITC share price NSE: Shares of cigarettes-to-hotels conglomerate ITC rose over 1 per cent on Wednesday. The company, whose popular cigarette brands include Classic, Gold Flake, Insignia, American Club, India Kings, and Wills Navy Cut, has acquired 857 compulsorily convertible preference shares of Rs 10 each of Mother Sparsh at a consideration of Rs 11.54 crore. At the time of writing the copy, ITC shares traded at Rs 448.7, up by Rs 3.60 or 0.81 per cent on the NSE. The counter rose as much as over 1 per to touch the day's high of Rs 450.40 from the previous close of Rs 445.1 on the NSE. According to the company's communiqué, ITC now holds 26.50 per cent of Mother Sparsh’s share capital.

ITC share price target: Should you buy, sell, or hold?

Jefferies has maintained a buy stance on ITC and has raised its target price to Rs 530 from Rs 520.

ITC shares: Past performance

ITC's stock has rewarded investors with a return of around 65 per cent in the last year (June 28, 2022) as against a rise of over 19 per cent in the benchmark Nifty index. The company has a market capitalisation of 5,55,84,309.35 lakh.