The shareholders of Tata Consumer Products Ltd (TCPL), Tata Coffee Ltd, and TCPL Beverages approved the reorganisation scheme on November 12th. Under the scheme, the business of Tata Coffee ltd will be merged with the other two companies.
Under the scheme, Tata Coffee (TCL) will be merged with Tata Consumer Products and its wholly-owned subsidiary. Under the reorganisation scheme, the plantation business of Tata Coffee would be amalgamated into TCPL Beverages & Foods, a wholly-owned subsidiary of TCPL.
As per the regulatory filing, Tata Consumer Products will issue 1 equity share for every 22 shares held in Tata Coffee to existing shareholders. Then upon the successful amalgamation of the remaining business of Tata Coffee, its shareholder will get 14 shares of Tata Consumer Products for every 55 shares held in Tata Coffee.
Tata Coffee will be dissolved without its business being wound up post the demerger and amalgamation is completed. Existing shareholders will receive 3 shares of TCPL for every 10 shares they own as of the record date for the amalgamation.
The merger was announced by Tata Consumer Products in March this year as a part of its strategic plan to unlock synergies and efficiencies.
On Wednesday, the shares of Tata Coffee Ltd were trading at Rs 219 levels. While the shares of Tata Consumer Products were trading marginally lower at Rs 765 levels.
Tata Consumer Products is an Indian fast-moving consumer goods company that stands as the world’s second-largest manufacturer and distributor of tea and a major producer of coffee.
Tata Coffee, a subsidiary of Tata Consumer Products, is engaged in the production of coffee, tea, pepper, and related products.
Written by Anouska Roy
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
To stay updated with the Latest Stock Market news, download our app here!
For editorial purposes, contact firstname.lastname@example.org
Start Your Financial Learning Journey
Want to learn Stock Market and other Financial Products? Make sure to check out, FinGrad, the learning initiative by Trade Brains. Click here to Register today to Start your 3-Day FREE Trail. And do not miss out on the Introductory Offer!!