ITC shares rise as subsidiary to acquire cloud services firm

Shares of ITC rose over a percent in early deals on Friday after the conglomerate said its subsidiary ITC Infotech India Limited inked a share purchase agreement on April 18 for the acquisition of 100 percent stake in Blazeclan Technologies Private Limited, a player in the cloud services. The cost of the acquisition is Rs 485 crore in an all cash deal.

The ITC stock gained 1.39% intraday to Rs 424.80. Total 3.41 lakh shares of the FMCG firm changed hands amounting to a turnover of Rs 14.40 crore.

Market cap of the firm climbed to Rs 5.29 lakh crore. The stock hit its all time high of Rs 499.60 on July 24, 2023 and fell to its 52 week low of Rs 397.95 on April 20, 2023.

ITC stock has a one-year beta of 0.5, indicating low volatility during the period.

In terms of technicals, the relative strength index (RSI) of ITC stock stands at 45.2, signaling it's trading neither in the oversold nor in the overbought zone. ITC shares are trading lower than the 5 day, 10 day 20 day, 100-day and 200-day but higher than the 30 day and 50 day moving averages.

The proposed acquisition will be completed in 6 to 8 weeks subject to completion of the customary closing conditions, said ITC said. The acquisition is expected to augment ITC Infotech’s capabilities to service its customers in a multi-cloud and hybrid cloud environment with focus on the Partner eco-system to accelerate future growth.