Key Points
The board of FMCG major Tata Consumer, which had recently acquired Capital Foods and Organic India, on Friday approved a Rs 6,500-crore fundraising plan to pay for the deals via commercial papers and rights issue...
Following a board meeting, the company announced that it will raise funds through the issuance and allotment of commercial papers for an amount not exceeding Rs 3,500 crore, to be utilized for bridge funding to facilitate the payment of consideration for the proposed acquisition of stakes in Capital Foods Private and Organic India...
Besides commericial paper issuance, Tata Consumer will raise another Rs 3,000 crore by way of issue of equity shares of the company through rights issue for an amount not exceeding Rs 3,000 crore to eligible equity shareholders of the company...
Last week, Tata Consumer had signed definitive agreements to fully acquire Capital Foods, owner of Ching's Secret and Smith & Jones, and Organic India, the Fabindia-backed organic teas and health products maker...
The company told analysts that the acquisitions are in line with TCPL's strategy of investing in high-growth, high-margin categories in an endeavor to become a formidable F&B player with packaged foods offerings across pantry-platform, cuisines and organic products.. Nomura said it expects 20% sales growth from Capital Foods while in case of Organic India, TCPLs execution prowess will materially improve its growth and margin profile...
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Tata Consumer to raise Rs 6,500 crore to fund acquisitions of Capital Foods, Organic India
19, Jan, 24A week after annoucing the acquisition deals of Capital Foods and Organic India, Tata Consumer board approved Rs 6,500-crore fundraising plan through commercial papers and rights issue to pay for the deals.
Tata Consumer to fund two acquisitions with cash reserve, bridge financing
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