ITC Limited clears Sproutlife merger without new shares
ITC Limited approved the amalgamation of wholly owned Sproutlife Foods, which reported FY 2025-26 turnover of ₹451.71 cr, without issuing new shares. OI Charts data showed short covering and max pain at ₹265 for the 23 Nov expiry.
after close1 source ↓machine-written, see hownot a recommendation
- ITC close
- ₹266.40
- On the day
- +0.30%
- Futures OI, short covering
- -0.2%
- Put-call ratio
- 0.61
- Max pain
- ₹265.00
ITC Limited approved the amalgamation of its wholly owned subsidiary Sproutlife Foods Private Limited on 2 Nov 2026, subject to the necessary approvals. The scheme is proposed to take effect from 1 Apr 2026 and will transfer Sproutlife’s operations into the listed parent without issuing fresh shares.
Sproutlife reported FY 2025-26 turnover of ₹451.71 cr and total assets of ₹150.07 cr. Since the subsidiary is already wholly owned, the arrangement will not change ITC Limited’s shareholding pattern. The absence of new shares also means the transaction does not create immediate equity dilution for existing investors. No fresh shares issued
The transaction strengthens the company’s direct ownership of its consumer-facing food business 🛒 while simplifying the group structure. The turnover figure provides scale for the business being absorbed, although the announcement does not disclose the effect on consolidated profit, margins or revenue after amalgamation. The scheme remains conditional on the statutory and regulatory approvals required under Sections 230 and 232 of the Companies Act, 2013. Amalgamation subject to approvals
OI Charts data for the 2 Nov 2026 session showed ITC Limited closing at ₹266.40, up 0.3%, with volume of 13,139,384 shares. The stock had gained 2.3% over five sessions but was up only 0.5% over 20 sessions. It remained near the lower end of its 52-week range of ₹252.80 to ₹421.65, with the low recorded on 28 Oct 2026 and the high on 3 Nov 2025.
In derivatives, futures open interest fell 0.2% to 213,681,450 shares, indicating short covering alongside a futures premium of 0.02%. For the 23 Nov 2026 expiry, the put-call ratio was 0.61 and max pain stood at ₹265. The largest call open interest was at ₹265, while the largest put open interest was at ₹250. These levels frame the near-term positioning around the latest close
Investors will next watch the approval process, the effective-date implementation and the company’s disclosures on Sproutlife’s contribution to consolidated financials. The transaction follows the broader integration of the subsidiary into ITC Limited’s FMCG portfolio.
Source: Multibagg AI, 03 Nov 2026
Not investment advice. For informational purposes only.