India Business Journal - ITC set to buy Prasuma in three tranches for greater footprint in ready-to-cook segment

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ITC set to buy Prasuma in three tranches for greater footprint in ready-to-cook segment

IBJ Bureau
Feb 07, 2025

Diversified conglomerate ITC has signed definitive agreements to acquire a 100 per cent stake in Prasuma, a leading brand in the frozen, chilled and ready-to-cook foods segment, for greater footprint in the Rs 10,000-crore sector.

The company announced on Thursday that by April 2027, it will invest around Rs 187 crore to acquire 62.5 per cent of Prasuma.

The valuation for the remaining 37.5 per cent will be decided at a later date.

The acquisition will be carried out in multiple tranches over three years.

In the first phase, ITC will acquire a 43.8 per cent stake in Ample Foods (AFPL), which owns the Prasuma brand, along with its subsidiary Chao Chao Foods and its associate company, Meat and Spice (MSPL).

The initial investment of Rs 131 crore will be made through a combination of primary subscription and secondary purchases, expected to be completed by March 2025.

ITC’s equity stake in Prasuma will subsequently increase to 62.5 per cent by April 2027 through an additional Rs 56-crore investment based on a pre-agreed valuation.

The final tranche will see ITC acquiring the remaining 37.5 per cent stake, along with a 100 per cent stake in MSPL, expected by June 2028, subject to valuation criteria and regulatory approvals.