Tata Consumer Products to raise ₹3,500 crore for acquisitions in Capital Foods and Organic India
₹3,500 crore to be used for the acquisition of stakes in Capital Foods Private Limited and Organic India Private Limited. The funds will be raised through the issuance and allotment of Commercial Papers, it added.
Further, raising of funds by way of issue of equity shares of face value ₹1 each will not exceed ₹3,000 crore. The date is yet to be determined and is subject to approvals from the Securities and Exchange Board of India (SEBI).
"For the purposes of giving effect to the rights issue, the detailed terms to the rights issue including but not limited to the 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," it added. Tata Consumer Products on January 12 announced that it has signed definitive agreements to acquire up to 100 percent of the issued equity share capital of Organic India, one of the ‘better for you’ organic brands spanning Food & Beverages and Herbal & Traditional Supplements.
This move is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market in fast-growing/high-margin categories. This acquisition will create a Health & Wellness platform for Tata Consumer Products.
The total addressable market for the categories that Organic India is present in is ₹7,000 crore in India and ₹75,000 crore in international markets where Tata Consumer has a strong presence. This acquisition is expected to provide significant synergy benefits in distribution, logistics, and overheads apart from driving portfolio premiumization and
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