Tata Consumer Products Shares Rally After Boards’ Nod To Raise 6500 Crore

Large cap Tata Group company from the FMCG sector, Tata Consumer Products Ltd (TCPL) shares jumped 0.92% after its Board of Directors considered and approved fund-raising to the tune of Rs 6500 crore via the issue of issue of commercial papers and a rights issue, as per the BSE filing. Last trading price of Tata Consumer Products shares on BSE is quoted at Rs 1157.65 apiece. Tata Consumer Products shares offered shareholders return of 56% in last 1-year and gained 99% in last 3-years. Check details below;

Tata Consumer Products Approves Fund Raising: As per the regulatory filing of the company dated January 19, 2024, "Raising of funds through the issuance and allotment of Commercial Papers, for an amount not exceeding Rs. 3,500 crores, to be utilized for bridge funding to facilitate the payment of consideration for proposed acquisition of stakes in Capital Foods Private Limited and Organic India Private Limited."

The BSE filing further stated, "raising of fund by way of issue of equity shares of the Company of face value Re. 1 each through Rights Issue for an amount not exceeding Rs. 3,000 crores to the eligible equity shareholders of the Company as on the record date (to be determined by the 'Capital Raising Committee' of the Board in due course) subject to receipt of statutory / regulatory approvals, as may be applicable in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosures Requirements) Regulations, 2018 and other applicable laws."

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.

TCPL Shares Performance & Return: The 52-week high price of Tata Consumer Products shares on BSE is Rs 1216.30 per share and 52-week low price is Rs 685.00 per share, respectively. The company has a market capitalisation of Rs 1,07,858.25 crore. Tata Consumer Products shares gained 29.30% in last 3-months, soared 35% in last 6-months, rose 57% in last 1-year, and offered gain of 61% in last 2-years. In last 3-years, Tata Consumer Products shares surged 99% and rallied 435% in last 5-years.

Tata Consumer Products Financials: The company's consolidated net profit was reported at Rs 389.43 crore for the second quarter ended September 30, 2022. Earlier, the Tata group company declared a net profit of Rs 285.80 crore for the July-September quarter a year ago, according to the BSE filing. Revenue from operations gained 10.87% to Rs 3,363.05 crore during the quarter under review as against Rs 3,033.12 crore in the corresponding period last year. TCPL Managing Director and CEO Sunil D'Souza said in the regulatory filing, "We delivered another quarter of double-digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in International Markets."

TCPL's revenue from the Indian market for July-September quarter rose 9.19% to Rs 2,159.95 crore, as against Rs 1,978.08 crore in the corresponding quarter of last year.

Tata Consumer Products About: Tata Consumer Products is a focused consumer products company uniting the food and beverage interests of the Tata group under one umbrella. It is home to key brands such as Tata Tea, Tetley, Tata Salt and Tata Sampann. With a combined reach of over 201 million households in India, it has an unparalleled ability to leverage the Tata brand in consumer products.

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