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Tata Consumer Products will raise ₹3,000 crore through a rights issue, offering 3.66 crore shares at ₹818 each. Shareholders are entitled to one rights share for every 26 shares they hold. While the record date is July 27, the right issue can be applied between August 5 and August 19, 2024.
Tata Consumer Products Ltd. (TCPL) revealed details of its upcoming rights issue on Tuesday, July 23, aiming to raise up to ₹3,000 crore. This move follows the board's approval of the rights issue in January this year.
TCPL plans to issue 3.66 crore rights equity shares, amounting to ₹2,997.77 crore. Each rights share is priced at ₹818, reflecting a 35% discount to TCPL's closing price on Tuesday. The existing shareholders will be entitled to one rights equity share for every 26 shares they hold.
Shareholders holding fewer than 26 shares will not have rights entitlement but can apply for additional rights equity shares, receiving preference in allotment for one additional share. However, these shares cannot be renounced to third parties.
The record date for the rights issue is set for July 27, 2024, a Saturday. The issue will open on August 5 and close on August 19, 2024.
Renunciations can be executed on the market from August 5 to August 12, 2024, allowing rights to be sold on exchanges. Off-market renunciations, where the buyer and seller agree on a price privately, can occur until the issue closes, provided the buyer has enough time to apply.
Earlier this year, TCPL acquired a 100% stake in Capital Foods, the owner of brands Ching's Secret and Smith & Jones, for ₹5,100 crore. Additionally, the company acquired Organic India for ₹1,900 crore, marking its entry into the health and wellness category.
Tata Consumer share price ended 4.4% higher at ₹1,258, in line with broader FMCG sector gains yesterday, on the Union Budget day. Year-to-date in 2024, the Tata Consumer Products share price has risen 17%.
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