Shares of Tata Coffee Ltd and Tata Consumer Products Ltd gained up to 4% each, to hit fresh 52-week highs on Friday, December 29, ahead of the merger of the two Tata Group companies on January 1.
While shares of Tata Coffee surged over as 4.2% to hit a 52-week high of ₹322.45 apiece. Tata Consumer Products gained over 4% to a 52-week high of ₹1,082.00 apiece. Tata Consumer Products also crossed a market cap of Rs 1 lakh crore.
In a stock exchange filing on Thursday, Tata Coffee said it will merge with the parent firm Tata Consumer Products on January 1.
The company also informed the bourses that the demerger of Tata Coffee's plantation unit will be integrated into TCPL Beverages & Foods, another entity of the Tata Group.
Shares of Tata Coffee have gained more than 60% from their 52-week low of ₹199.15 apiece, while those of Tata Consumer Products advanced 57% from the 52-week low of ₹685.
Following the gain, Tata Coffee's market capitalisation has reached over ₹ 5,900 crore and Tata Consumer Products commands a market valuation of around ₹99,770 crore.
As per the filing, post-merger, Tata Coffee Ltd will dissolve without winding up from January 1. Besides, January 15 has been set as the record date.
In 2022, shareholders of Tata Consumer Products Ltd, Tata Coffee, and TCPL Beverages and Foods endorsed the restructuring plan for the three companies in a vote conducted on November 12.
At 11.25am, shares of Tata Coffee were trading 3.84% higher at ₹320.25 apiece, and shares of Tata Consumer Products were at ₹1,077.75 apiece, up 3.84%.
