In a strategic move to further strengthen its corporate portfolio, ITC Limited has successfully acquired Greenacre Holdings Limited (GHL), a company specializing in property infrastructure maintenance, engineering, procurement, and project management consultancy services. This acquisition marks a significant step in ITC's ongoing group restructuring process and reinforces its commitment to enhancing its business operations.

Details of the Acquisition

The acquisition involves the purchase of the entire share capital of GHL, which consists of 4,20,60,166 equity shares with a nominal value of ₹10 each. The total consideration for this transaction is ₹42.10 crores, which reflects the book value of the shares in the books of Russell Credit Limited (RCL), a wholly owned subsidiary (WOS) of ITC. As a result of this acquisition, GHL has now become a direct WOS of ITC.

Strategic Significance of the Acquisition

The acquisition of Greenacre Holdings is part of ITC's larger corporate restructuring within the group. Although GHL's business operations are not directly related to ITC's core businesses, such as FMCG, hotels, and paperboards & packaging, the move is intended to streamline operations within ITC's various subsidiaries and enhance synergies across its holdings.

The acquisition is conducted at book value and the necessary approvals for this related-party transaction were secured as required by regulations. ITC has confirmed that the transaction was not on an arm's length basis, but it was carried out with the requisite disclosures to ensure compliance with the applicable laws. The company also intends to include further details of this transaction in its Annual Report.

Company and Business Profile of Greenacre Holdings

Greenacre Holdings Limited, established on June 2, 1986, has a solid presence in property infrastructure and is known for providing specialized services in engineering, procurement, and construction management. GHL has been serving clients in India, with its last three years' turnover as follows:

• 2023-24: ₹7.52 Crores
• 2022-23: ₹5.95 Crores
• 2021-22: ₹6.39 Crores

While GHL operates within a specialized domain that is somewhat distinct from ITC’s core areas of focus, the acquisition aligns with ITC’s broader corporate strategy of consolidating its interests and expanding its portfolio in complementary sectors.

Transaction Timeline and Considerations

• Completion of the Acquisition: The transaction was finalized on November 29, 2024, with ITC acquiring 100% of the equity shares of GHL.
• Transaction Consideration: The shares were acquired for a total of ₹42.10 crores, with payment made in cash.
  
  

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This acquisition follows ITC's ongoing efforts to reorganize its subsidiaries for better operational efficiency and value creation. No regulatory approvals were required for this transaction, and ITC has complied with all necessary disclosure requirements as mandated by the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Impact on ITC's Business Operations

While the acquisition of Greenacre Holdings does not directly align with ITC’s primary business verticals such as FMCG or hospitality, it plays a crucial role in the company’s long-term strategic planning and group restructuring efforts. The move consolidates ITC's internal holdings and aligns with the company's goal of creating an integrated and optimized business structure.

Greenacre Holdings will continue to operate in its specialized domain of property infrastructure, contributing to the overall growth of the ITC Group through its expertise in project management and consultancy services. The acquisition will likely provide ITC with valuable insights and expertise in areas that could support future expansion or diversification efforts.

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