Tata Consumer Products Ltd. has approved raising funds to the tune of ₹3,500 crore through the issue of commercial papers and a rights issue, the Tata Group company said in an exchange filing.
Through the issue and allotment of commercial papers, the company plans to raise ₹3,500 crore, which will be used for bridge funding to facilitate the payment of consideration for the proposed acquisition of stakes in Capital Foods Pvt. Ltd. and Organic India Pvt. Ltd. Later, the company will raise ₹3,000 crore through the rights issue, the details for which will be determined in due course.
He also highlighted an immediate margin synergy of 400 basis points with Capital Foods, which can see steady margin upwards of 25%.
D'Souza also shared plans to
raise funds via either CPS or a rights issue for these acquisitions to raise enough capital for future inorganic growth. While the company is not currently in talks with any prospective acquisitions, it remains open to more.
Shares of Tata Consumer Products have surged to the day's high, currently trading 1.1% higher at ₹1,158.95.
First Published: Jan 19, 2024 11:10 AM IST
