ITC Infotech India Limited (‘I3L’), a wholly owned subsidiary of ITC Limited, has announced the incorporation of a new subsidiary, ITC Infotech Arabia Limited ('ITC Arabia').
ITC Arabia, now a step-down wholly owned subsidiary of ITC Limited, is a related party of the company. ITC Limited, the parent company, does not have a promoter or promoter group, distinguishing its corporate structure.
The move to incorporate ITC Arabia aligns with I3L's vision to extend its footprint in the Middle East, leveraging the growing demand for information technology services and solutions in the region, the company said in an exchange filing on December 19.
As of the incorporation date, I3L holds 100 percent of ITC Arabia's share capital, which consists of 16,00,000 shares at SAR 10 each, subscribed at par. The financial transaction involves I3L providing cash consideration to ITC Arabia for the subscription of its entire share capital.
ITC Arabia would focus on offering information technology services and solutions, reflecting the core objective of I3L to contribute to the digital transformation landscape in Saudi Arabia, the company said.
ITC Ltd. has outlined a three-horizon growth framework in its recent investor presentation, focusing on core business extension and defence, the development of emerging businesses such as beverages, frozen foods, liquid wash, homecare, nicotine, and value added agri and the creation of viable options for future growth opportunities.
In the September quarter, the FMCG major announced a standalone net profit of Rs 4,926.96 crore, a 10.32 percent increase from the year-ago period. The company had a revenue of Rs 16,550 crore and Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rs 6,041.5 crore.
On December 19, the ITC share closed 1.06 percent higher at Rs 456.45 on the National Stock Exchange.
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