Updated January 19th, 2024 at 17:24 IST
Tata Consumer Products to raise up to Rs 6,500 crore; shares rise
The company said that it would raise up to Rs 3,500 crore via Commercial Paper to bridge fund Capital Foods & Organic India acquisitions
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Tata Consumer fund raise: FMCG company Tata Consumer Products board on Friday approved raising up to Rs 6,500 crore via issue of commercial papers and rights issue of shares.
The company said that it would raise up to Rs 3,500 crore via Commercial Paper to bridge fund Capital Foods & Organic India acquisitions while it would raise up to Rs 3,000 cr via equity shares through rights issue.
“For the purposes of giving effect to the rights issue, the detailed terms to the rights issue including but not limited to issue price, rights entitlement ratio, record date, timing and terms of payment will be determined in due course by the Board, or the ‘Capital Raising Committee’ constituted by the Board, in accordance with applicable laws, subject to receipt of necessary approvals, as may be required,” said Tata Consumers in an exchange filing.
The fund raise comes a week after the company said it would buy Capital Foods for an enterprise value of Rs 5,100 crore. It also said it would buy Organic India in a deal worth Rs 1,900 crore.
Notably, the stocks rose over 1 per cent following the announcement.
As of 11:09 am, shares of Tata Consumers were trading 0.81 per cent higher at Rs 1,156.35 per share.
Published January 19th, 2024 at 11:12 IST