Share prices of India’s fast-moving consumer goods company moved up by over Rs. 17 at Rs. 1,165.60 in the morning session from its previous close of Rs. 1,146.8.
With a market cap of Rs. 1,07,110 crore, Tata Consumer Products Limited has given over 33.6 percent returns in the past six months and nearly 55.7 percent in the last one year. So far, the company has given returns of over 6.4 percent in 2024.
According to the recent filings in the stock exchanges, the Board of Directors (BoD) of the company at its meeting held on January 19, considered and approved the fund raising proposals.
The first approved proposal includes raising funds through the issuance and allotment of Commercial Papers for an amount not exceeding Rs. 3,500 crores. This is to be used for bridge funding to facilitate the payment of consideration for the proposed acquisition of stakes in Capital Foods Private Limited and Organic India Private Limited.
Another approved proposal consists of raising fund by way of issue of equity shares of Tata Consumer Products Ltd. of face value Re. 1 each through Rights Issue for an amount not exceeding Rs. 3,000 crore to the eligible equity shareholders of the company.
In terms of financials, the company is almost debt free and has been maintaining a healthy dividend payout of 56.1 percent, but it has a low return on equity of 6.51 percent over the last 3 years.
Tata Consumer Products’ revenue from operations on a year-on-year basis grew by 11.02 percent from Rs. 3,741 crore in the June 2023 quarter to Rs. 3,734 crore in the September 2023 quarter, accompanied by an increase in net profit from Rs. 338 crore in June 2023 quarter to Rs. 364 crore in September 2023 quarter.
As of September 2023, FIIs hold 25.27 percent of the shares, whereas DIIs hold 16.87 percent of the shares in the company, aggregating to 42.14 percent of the institutional holdings.
Tata Consumer Products, renamed from Tata Global Beverages Limited (TGBL), is home to brands like Tata Tea, Tetley, Tata Salt, Himalayan Water and other emerging brands.
The company is one of the leading companies of the Tata Group, with a presence in the food and beverages business worldwide, and is the second largest player in branded tea in the world.
Written by Shivani Singh
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