ITC closes Century Pulp deal in 2026: ₹3,498 cr

Deal closure: what was confirmed on August 1, 2026

Aditya Birla Real Estate Limited (ABREL) has finalized the slump sale of its pulp and paper undertaking, Century Pulp and Paper, to ITC Limited. The companies confirmed the transaction was officially closed on August 1, 2026. The transfer was structured as a going concern, meaning the entire business moved together rather than being split into separate asset sales. ABREL said the undertaking was transferred with its assets and liabilities. The completion also covered contracts and employees attached to the unit, underscoring continuity of operations under the new owner. ITC informed the National Stock Exchange of India Ltd and BSE Ltd about the completion on August 1, 2026 through regulatory filings. The closure marks the end of a multi-stage process that began with a business transfer agreement signed in FY25.

What “slump sale” and “going concern” meant in this transaction

The transaction was executed on a slump sale basis. In practical terms, the undertaking was transferred as a single operational entity rather than through individual transfers of property, equipment, or contracts. The article notes that ITC took over the business unit along with its assets, liabilities, existing contracts, and employees. This structure is typically used to preserve business continuity, especially where manufacturing operations and customer-supplier arrangements are involved. ABREL’s disclosure described the transfer as covering all associated operational elements. ITC’s completion update also stated that all necessary steps to transfer the business had been concluded. Across the disclosures, the consistent point was that the business was sold “as is” as an ongoing operation.

Key dates: agreement, approvals, and closing

The Business Transfer Agreement (BTA) between ABREL and ITC was dated March 31, 2025. Shareholders approved the divestment on July 30, 2025, according to the details provided. A key regulatory milestone referenced in the coverage was the Competition Commission of India (CCI) approval. ITC’s exchange filing cited a CCI letter dated December 16, 2025 approving the proposed acquisition of the pulp and paper business as a going concern on a slump sale basis. During ABREL’s Q4 FY26 concall, management referred to CCI approval as a key clearance and also mentioned certain state-level approvals were pending at that time, with an expectation to conclude the transaction in the quarter. The deal was ultimately closed on August 1, 2026.

What exactly was transferred to ITC

The undertaking sold was ABREL’s pulp and paper business operated under the name “Century Pulp and Paper.” The scope included the full set of business components needed to run the operation, including assets, liabilities, contracts, and employees. The unit covers the manufacture, distribution, and sale of pulp and paper products. The product set referenced includes writing paper, printing paper, tissue paper, paperboard, rayon-grade pulp, and paper-grade pulp, along with other paper-based products. The operation is described as located in Lalkuan, Uttarakhand. The transfer of employees and contracts indicates that the acquisition was designed to keep the unit running without a carve-out of key operating parts.

Consideration: ₹3,498 crore cited, and ₹3,500 crore valuation reference

The consideration for the transaction was reported as ₹3,498 crore in multiple references linked to the BTA announcement and board endorsement, with language indicating a one-time cash payment by ITC to ABREL. Separately, an exchange filing reference described the acquisition as valued at ₹3,500 crore on a cash-free, debt-free basis. The article also notes that the fixed payment is subject to certain adjustments as per the agreement. Taken together, the disclosures indicate the deal value was communicated in a narrow range, with ₹3,498 crore used as the headline cash consideration figure and ₹3,500 crore appearing as a valuation reference on a cash-free, debt-free basis.

Why ABREL exited pulp and paper

ABREL positioned the transaction as a strategic divestiture to streamline operations and focus on its core real estate portfolio. The Q4 FY26 concall coverage described FY26 as a turning point, with the company executing the transfer agreement to divest its legacy pulp and paper business and also discontinuing textile operations. Management commentary referenced a large gross development value (GDV) base of about ₹70,000-72,000 crore. The company also described having sold about 70-75% in the context of its land bank and pipeline commentary. The stated direction was to focus exclusively on scaling the real estate segment following the exit from legacy operations.

Why ITC pursued Century Pulp and Paper

For ITC, the acquisition was described as a strategic expansion move in the pulp and paper segment through integration of an established operation. ITC’s stated rationale, as cited, was to drive the next phase of growth in its paperboards and specialty papers business by expanding capacity at a new location, given limited scope for expansion at existing facilities. The capacity figures referenced provide context to the scale impact: ITC’s paperboards and specialty papers business has annual capacity of over 1 million tonnes, while Century Paper has an installed capacity of 480,000 metric tonnes per annum. The coverage also noted that the acquisition would expand ITC’s paper capacity by half and provide a foothold in northern India.

Stock market reaction and disclosure trail

ABREL shares rose 3.4% in an intraday move to ₹1,760 per share after the CCI approval-linked news flow, with the stock trading 3.09% higher at ₹1,755.05 per share on BSE at 10:40 AM, as reported. A separate reference from April 1, 2025 noted ABREL shares rose up to 3% intraday to ₹2,028.30 after the company announced the sale agreement for Century Pulp and Paper to ITC. On the regulatory side, ITC notified NSE and BSE of transaction completion on August 1, 2026. These disclosures and market moves framed the transaction as a closely tracked corporate action over multiple milestones.

ABREL’s FY26 financial and shareholder actions mentioned alongside the divestment

The Q4 FY26 concall coverage also provided ABREL’s quarterly financial snapshot and shareholder payout decision. ABREL reported a consolidated net profit of ₹5.39 crore for the final quarter, compared with a loss of ₹135.20 crore in the previous year period. The board recommended an increased dividend of ₹2.50 per equity share. These updates were presented in the context of ABREL’s broader transition, including the completion of the business transfer to ITC and the discontinuation of textile operations.

Key facts table

Market impact and what to track next

The confirmed market impact in the article is largely event-driven: ABREL’s stock moved after the CCI approval update, and the companies made formal exchange disclosures at key points, including completion. Operationally, the going concern structure means customers and suppliers are likely to see continuity in contracts and execution, since the transfer included contracts and employees. For ITC, the reported strategic objective is capacity expansion in paperboards and specialty papers, supported by the installed capacity figure of 480,000 tonnes per annum for Century Paper and ITC’s over 1 million tonnes annual capacity base. For ABREL, the transaction is described as a value-unlocking step and a portfolio shift toward real estate.

The next set of updates for investors is likely to come through subsequent quarterly filings where the impact of the transfer is reflected in segment reporting and financial statements, and through any integration-related disclosures ITC may choose to provide within its paper business commentary.