ITC Takes Full Ownership of Yoga Bar Maker Sproutlife Foods for Rs 645 Crore: What It Buys and What It Risks
- September 29, 2026
- Posted by: Kunal Singla
- Category: News
ITC Rs 263.75, down 0.55% (29 Sep, 10:22 AM). Sproutlife buyout Rs 645 crore for 100% stake. P/E 16.46 vs industry 35.45. Dividend yield 5.47%.
Quick Answer
The ITC share price was Rs 263.75 at 10:22 AM on 29 September 2026, down 0.55 percent, after ITC completed the acquisition of the remaining equity in Sproutlife Foods, the maker of the Yoga Bar brand, for Rs 645 crore by acquiring an additional 13,445 equity shares. ITC now owns 100 percent of Sproutlife Foods, having first invested in the company in 2023 and taken board control in April 2026. Sproutlife’s revenue rose to about Rs 200 crore in FY25 from Rs 108 crore a year earlier, a business that is still small next to ITC’s overall scale. The stock trades at a P/E of 16.46 against an industry figure of 35.45 and offers a 5.47 percent dividend yield.
ITC Limited said it has completed the acquisition of a 100 percent equity stake in Sproutlife Foods Private Limited for Rs 645 crore by acquiring an additional 13,445 equity shares. Sproutlife owns the Yoga Bar brand of nutrition bars, muesli, oats and cereals, and the deal completes a buyout that ITC first structured in January 2023.
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ITC shares traded in a narrow range through the morning, moving with the broader FMCG sector rather than reacting sharply to the news. This article traces the Yoga Bar deal from its start, sets out the live numbers, and covers the risks behind the ITC share price.
The Yoga Bar Deal: From 2023 Stake to 2026 Full Ownership
| Date | Stake and Investment |
|---|---|
| January 2023 | Binding term sheet to acquire 100% over 3 to 4 years |
| May 2023 | Rs 175 crore for a 39.4% stake |
| April 2026 | Board control taken, 47.5% stake, Sproutlife becomes a subsidiary |
| 29 September 2026 | Remaining stake acquired for Rs 645 crore, taking ownership to 100% |
ITC structured the Yoga Bar acquisition in tranches from the start, tying the final payout to Sproutlife’s performance rather than paying the full price upfront. That staged approach limited ITC’s risk if the brand’s growth had slowed before the deal completed, a discipline that shows up across how the ITC share price has behaved through each tranche.
Sproutlife’s revenue rose from Rs 108 crore in FY24 to about Rs 200 crore in FY25, so the final Rs 645 crore tranche was paid against a business that had already scaled meaningfully since the original 2023 investment.
Also read – NCC Wins a Rs 1,077 Crore Andhra Pradesh Water Order the Same Day the Stock Hits a Fresh 52-Week Low
ITC Share Price Today: Numbers and Technical Levels
| Metric | Value (29 Sep, 10:22 AM) |
|---|---|
| ITC share price | Rs 263.75 (down 0.55%) |
| Previous close | Rs 265.20 |
| Day range | Rs 263.50 to Rs 265.80 |
| 52-week high / low | Rs 426.40 / Rs 255.50 |
| Volume so far | 19.36 lakh shares |
| RSI (14-day) | 50.3 |
| MACD vs signal line | -1.30 vs -2.19 |
| SuperTrend | Bearish, resistance at Rs 275.56 |
| 20-day average | Rs 264.33 |
| Market cap (Friday close) | Rs 3,32,184 crore |
| P/E vs industry P/E | 16.46 vs 35.45 |
| Dividend yield | 5.47% |
The ITC share price is 38.1 percent below its 52-week high of Rs 426.40 and 3.2 percent above its 52-week low of Rs 255.50, so it remains closer to the lower end of its yearly range. The RSI of 50.3 is neutral, and the stock is trading almost exactly at its 20-day average of Rs 264.33.
For the ITC share price, the SuperTrend indicator shows resistance at Rs 275.56, and the MACD line, while still negative, has moved above its signal line, a sign that selling pressure has eased.
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Why Yoga Bar Matters for the ITC Share Price
Yoga Bar’s roughly Rs 200 crore of FY25 revenue is a fraction of a percent of ITC’s overall turnover, so the deal will not move ITC’s consolidated numbers in the near term. Its significance for the ITC share price is strategic: it gives the company full control of a healthy-snacking brand in a segment ITC has flagged as fast-growing and under-penetrated.
Full ownership also means the business behind the ITC share price absorbs 100 percent of Sproutlife’s losses or profits rather than sharing them with outside investors, and it can integrate the brand’s distribution and sourcing into ITC’s existing FMCG network without minority shareholder approvals slowing decisions.
Also read – ITC Takes Full Ownership of Yoga Bar Maker Sproutlife Foods for Rs 645 Crore: What It Buys and What It Risks
Valuation and Income Behind the ITC Share Price
ITC trades at a P/E of 16.46 against an industry figure of 35.45, a discount that partly reflects the tobacco business’s regulatory overhang and partly the company’s high payout policy. Return on equity is 28.53 percent and debt to equity is just 0.03, among the strongest balance sheets in Indian FMCG.
The dividend yield of 5.47 percent is unusually high for a large consumer company and is one reason the ITC share price tends to find support even in weak markets, alongside the low debt that keeps the ITC share price relatively defensive. The FMCG-ex-cigarettes business, which includes brands like Aashirvaad, Sunfeast and now Yoga Bar, is the segment ITC is trying to scale to reduce its reliance on cigarettes.
Risks for the ITC Share Price
Regulatory risk on cigarette taxation remains the largest single factor for the ITC share price, since any increase in excise duty or GST on tobacco products would hit the most profitable part of the business. Integration risk is the second: D2C brands like Yoga Bar can lose their original consumer connect once folded into a large corporate structure.
Competitive intensity in healthy snacking is the third risk, with several other FMCG majors and D2C brands chasing the same under-penetrated category that ITC is now betting on with full ownership of Yoga Bar.
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Conclusion
The ITC share price of Rs 263.75 barely moved on the news that ITC now fully owns Yoga Bar maker Sproutlife Foods after a Rs 645 crore final payment, a deal structured in tranches since 2023. A P/E of 16.46, a 5.47 percent dividend yield and a near debt-free balance sheet are supports, while cigarette tax risk and competition in healthy snacking are the concerns. Investors deciding whether to buy ITC shares should watch the Rs 275.56 resistance, follow stop-loss levels and consult a SEBI-registered adviser.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data independently before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What is the ITC share price today?
Ans. The ITC share price was Rs 263.75 at 10:22 AM on 29 September 2026, down 0.55 percent from Rs 265.20. The day range is Rs 263.50 to Rs 265.80.
What did ITC acquire in Sproutlife Foods?
Ans. ITC completed the acquisition of the remaining equity in Sproutlife Foods, the maker of Yoga Bar, for Rs 645 crore, taking its ownership to 100 percent.
When did ITC first invest in Yoga Bar?
Ans. ITC first invested in Sproutlife Foods in 2023 with a Rs 175 crore investment for a 39.4 percent stake, and took board control with a 47.5 percent stake in April 2026.
How big is Yoga Bar’s business?
Ans. Sproutlife Foods’ revenue rose to about Rs 200 crore in FY25 from Rs 108 crore in FY24, a small business relative to ITC’s overall scale.
Why did the ITC share price barely react to the acquisition?
Ans. The deal size is small next to ITC’s overall revenue, and it had been signalled since 2023, so it added little new information for the ITC share price.
What are the key technical levels for the ITC share price?
Ans. The key levels for the ITC share price are SuperTrend resistance at Rs 275.56 and the 20-day average of Rs 264.33. The RSI is 50.3, a neutral reading.
Is the ITC share price attractively valued compared with FMCG peers?
Ans. The P/E of 16.46 is well below the industry figure of 35.45, though this partly reflects the regulatory overhang on the tobacco business.
Should I buy ITC shares now?
Ans. A high dividend yield and low debt support the case, but tobacco tax risk is a factor. Check your risk appetite, use a stop-loss and consult a SEBI-registered adviser.
