ITC Limited has completed the voluntary liquidation of its wholly-owned subsidiary Prag Agro Farm Limited, with the dissolution taking effect from December 10, 2025. The company received the National Company Law Tribunal (NCLT) Mumbai Bench order on December 18, 2025, confirming the completion of the liquidation process.

Regulatory Disclosure and Timeline

The company has made the mandatory disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing stock exchanges about the subsidiary's dissolution. The NCLT order was received at 7:12 PM on December 18, 2025, marking the formal completion of the voluntary liquidation proceedings.

Financial Impact Assessment

The liquidated subsidiary had minimal financial impact on ITC's overall operations. Prag Agro Farm Limited reported total income of ₹9.62 lakhs for FY 2024-25, representing merely 0.0001% of ITC Limited's total income. The subsidiary's net worth as of March 31, 2025, stood at ₹82.11 lakhs, constituting 0.0013% of ITC's net worth.

Corporate Structure Optimization

With the completion of this liquidation, Prag Agro Farm Limited has ceased to be a wholly-owned subsidiary of ITC Limited. This strategic move represents the company's ongoing efforts to streamline its subsidiary portfolio and optimize its corporate structure. The voluntary nature of the liquidation indicates a planned approach to focus resources on core business areas while maintaining regulatory compliance throughout the dissolution process.

ITC Ltd. has received regulatory approval for its strategic acquisition in the paper sector. The Competition Commission of India (CCI) has approved the company's proposed acquisition of the pulp and paper business of Aditya Birla Real Estate Ltd. (ABREL) for Rs 3,498.00 crore.

Regulatory Approval Received

In a regulatory filing dated December 17, 2025, ITC announced that the CCI has granted approval for the acquisition through a letter dated December 16, 2025. The approval covers the acquisition of Century Pulp and Paper (CPP) as a going concern on a slump sale basis.

About Century Pulp and Paper

Century Pulp and Paper represents a significant addition to ITC's paper portfolio. The company details include:

Strategic Business Impact

The acquisition aligns with ITC's expansion strategy in the paperboards and packaging segment. The company's paperboards and packaging division has demonstrated strong performance, generating a free cash flow of Rs 4,000.00 crore during FY20-24.

Transaction Timeline

The deal progression shows systematic regulatory compliance. ABREL's board had approved the business transfer agreement in March 2025 for the divestment. Both companies had earlier expressed confidence that the transaction would not raise competition concerns due to the highly competitive nature of the paper industry.

Market Implications

For ITC, this acquisition strengthens its position in the pulp and paper sector, complementing its existing paperboards and packaging operations. For ABREL, the divestment represents a value-unlocking exercise, allowing focus on core real estate business activities.

With CCI approval now secured, ITC can proceed with completing this strategic acquisition that enhances its manufacturing capacity and market presence in the paper industry.