Tata Chemicals' shares rose over 8.8 percent, and Tata Global Beverages surged 9.3 percent after the former said it will transfer its consumer products business to the latter.
At 11:25 am, Tata Chemicals' stock price surged 7.55 percent to Rs 598.85 per share on the National Stock Exchange. Intra-day, the stock rose 8.8 percent to its day's high at Rs 606 per share.
Meanwhile, shares of Tata Global Beverages jumped 9.86 percent to Rs 218.90 per share. And intra-day, the stock price rose 10 percent to its day's high of Rs 220.15.
In a press release on Wednesday, Tata Chemicals said that the company will de-merge its consumer products business in an all-equity transaction. Tata Chemicals Consumer will include all of Tata Chemicals' Consumer products i.e. salt, spices, pulses, protein foods, snacks, natural sweeteners and detergents.
The proposed transaction will create a focused Consumer Products Company with a combined turnover and EBITDA of Rs 9,099 crore and Rs 1,154 crore respectively, for the 12-month period ended March 31, 2019 on a proforma basis, the release added.
The transfer is also expected to combine key brands like Tata Salt, Tata Tea, Tata Sampann and Tetley under a single umbrella.
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First Published: May 16, 2019 11:07 AM IST
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