Tata Group's consumer focussed company, Tata Consumer Products Ltd (TCPL) is set to announce a ₹3,500 crore rights issue after seeking board approval to fund it's recent acquisitions of Capital Foods and Organic India figured at ₹7,000 crore, said the company's MD and CEO Sunil D'Souza.
Notably, Tata Consumer has not announced any Rights Issue since 2018.
Late last week, TCPL announced its plans to acquire a 100% stake in Capital Foods and Organic India. TCPL is looking to raise funds for these acquisitions via CPS/ rights issue, said Sunil D'Souza, in an interview to CNBC-TV18.
TCPL will consider and approve fundraising through rights issues in its board meeting scheduled on 19th January 2024. The Tata group company informed Indian exchanges about the plan in its latest exchange filing on Friday evening.
In one of its latest exchange filings on Friday at Indian stock market's bourses, TCPL said, "In accordance with Regulation 29(1)(d) of the Listing Regulations, we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, January 19, 2024, to consider, inter-alia, the proposal for fund raising by debt issue in the form of commercial papers/debentures and equity issue through Rights Issue or any other appropriate mode, as may be decided by the Board, subject to requisite approvals."
Besides acquiring Capital Foods, TCPL has also signed an agreement with its founder Ajay Gupta to continue advising Tata Consumer on the fast-moving consumer goods (FMCG) sector.
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