It was in January this year when the company's MD and CEO Sunil D'Souza announced that TCPL is set to announce a ₹3,500 crore rights issue after seeking board approval to fund its recent acquisitions of Capital Foods and Organic India figured at ₹7,000 crore.
The meeting of the capital raising committee of the board of the company held on July 23, 2024, approved the terms of the issuance of equity shares face value of Re 1 each by way of rights issue for an amount aggregating up to Rs 2,997.77 crore, it added.
This capital will support the company's growth and expansion plans, including acquisitions of stakes in Capital Foods Pvt Ltd and Organic India Pvt Ltd.
The funds will also support the expansion of their existing brands and the introduction of new products in both domestic and international markets.
A rights issue is a way for companies to raise additional capital by offering existing shareholders the right to purchase additional shares at a discounted price, usually in proportion to their current holdings. This method allows companies to generate funds without taking on debt. Shareholders can choose to exercise their rights, sell them, or let them expire.
Tata Consumer Products Ltd's stock is currently trading at Rs 1,177.4, reflecting a slight decrease of 0.87% today. Over the past year, the stock has shown impressive growth, reaching a 52-week high of Rs 1,253.42 and a low of Rs 818.08. The company's market capitalization stands at approximately Rs 1.17 trillion.
The company has reported consistent revenue growth, driven by strong performance in both domestic and international markets. Their focus on health and wellness products has resonated well with consumers.
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