Stocks in news: ITC to acquire 10% stake in Blupin Technologies, shares up nearly 1% intraday

Stocks in News: Diversified entity ITC on Thursday said it will acquire 10.07 per cent stake in Blupin Technologies Private Limited, the company behind direct-to-consumer(D2C) brand, Mylo for up to Rs 39.34 crore. The company informed about this via a filing to exchanges. 

The stock was trading at Rs 261.65 on the NSE on Thursday at around 1:40 pm and were up nearly 1 per cent intraday. The stock attained an intraday high of Rs 264.45

The investment will provide the company an early mover advantage in the evolving content-to-community-to-commerce space and will provide an expanded presence in the D2C space, ITC said in a regulatory filing.

Blupin Technologies is a web and app-based content-to-community-to-commerce platform and offers mother and baby care products and services under the brand name 'Mylo'.

It is focused on the parenting journey of young families, it added. The cost of acquisition will not exceed Rs 39.34 crore, the filing said.

See Zee Business Live TV Streaming Below:

"With this investment, ITC will further expand its presence in the D2C mother and baby care segment," the company said.

Commenting on the acquisition, ITC Chief Executive, Personal Care Products Business, Sameer Satpathy said, within a short period of time, Mylo has demonstrated great potential in the evolving content-to-community-to-commerce model by nurturing an online platform where people learn, share, trust and belong.

Also Read: Sector Spotlight: Underperformer FMCG now poised for a turnaround; analyst picks ITC, Dabur, Tata Consumer for top gains

"The investment will provide ITC the opportunity to foray into this emerging space and become an integral part of the evolution of this area," he added.

He further said, the investment in Mylo will also enable ITC to strengthen focus in the mother and baby community building platform, besides expanding its presence in the D2C mother and child care segment.

Blupin Technologies Founder and CEO Vinit Garg said the partnership with ITC will further provide unique synergies and competitive strengths to scale Mylo's business.

ITC Chairman and Managing Director Sanjiv Puri has been giving thrust on identifying new vectors of growth. In November 2021, the company had announced its investment in Mother Sparsh Baby Care Pvt Ltd, an ayurvedic and natural personal care brand in the D2C space with a focus on the mother and baby care segment.