Tata Consumer Products Rights Issue will open for subscription from 05 August 2024. the company aims for an issue size of ₹2,997.76 Crores through this rights Issue.
About the company
Tata Consumer Products (TCPL), is a key entity in India’s fast-moving consumer goods (FMCG) sector and a member of the Tata Group. The company specializes in the manufacturing and marketing of food products and non-alcoholic beverages, with a strong focus on tea and coffee.
Today, Tata Consumer Products’ portfolio includes tea, coffee, water, ready-to-drink beverages, salt, pulses, spices, ready-to-cook and ready-to-eat products, breakfast cereals, snacks, and mini meals. Its key beverage brands are Tata Tea, Tetley, Organic India, Eight O’Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral Water, Tata Copper+, and Tata Gluco+. The food portfolio features brands such as Tata Salt, Tata Sampann, Tata Soulfull, Ching’s Secret, and Smith & Jones.
Tata Consumer Products operates in over 40 countries, with about 56% of its revenue coming from the Indian market. The company employs around 59,000 people worldwide and boasts significant production capacity, manufacturing millions of kilograms of tea annually across multiple estates and factories.
Objectives of the Issue
- Repayment in full or buyback of the commercial papers issued/refinanced by the company for financing the acquisitions of the Acquired Companies; and
- General corporate purposes.
Tata Consumer Products Rights Issue Timetable
| Rights Issue Approval Date | 23 July 2024 |
| Rights Issue Record Date | 27 July 2024 |
| Credit of Rights Entitlement | 02 August 2024 |
| Rights Issue Opening Date | 05 August 2024 |
| Last Date for Market Renunciation | 12 August 2024 |
| Rights Issue Closing Date | 19 August 2024 |
| Finalization of Basis of Allotment | 23 August 2024 |
| Rights Allotment Date | 26 August 2024 |
| Credit Date | 28 August 2024 |
| Listing Date | 30 August 2024 |
Tata Consumer Products Rights Issue Details
| Issue Open | August 5, 2024 – August 19, 2024 |
| Security Name | Tata Consumer Products Limited |
| Issue Size (Shares) | 36,647,492 |
| Issue Size (Amount) | ₹2,997.76 Crores |
| Issue Price | ₹818 per share |
| Face Value | ₹1 per share |
| Listing At | BSE, NSE |
| Terms of Payment | The entire amount of the Issue Price of ₹818/- per Rights Equity Share shall be payable at the time of Application. |
| Entitlement | 1 Rights Equity Share(s) for every 26 fully paid-up Equity Shares held on Record Date |
Tata Consumer Rights Issue Calculation
| Tata Consumer Rights Issue Price | ₹ 818 per share |
| Market Price on Rights Issue Approval | ₹ 1,256.65 per share |
| Dilution Factor (X) | 1.04 |
| Fair Value After Dilution at Prevailing Price | ₹ 1,240.40 per share |
Company Financials
| FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 12,425 | 13,783 | 15,206 |
| Expenses | 10,707 | 11,927 | 12,922 |
| Operating Margin (%) | 14.00 | 13.00 | 15.00 |
| Net Income | 1,079 | 1,347 | 1,301 |
| ROCE (%) | 9.00 | 9.00 | 11.00 |
Tata Consumer Products Rights Issue Documents
Lead Manager(s)
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- Hsbc Securities & Capital Markets Pvt Ltd
Tata Consumer Products Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 810 811 4949
Email: tcpl.rights2024@linkintime.co.in
Website: www.linkintime.co.in
Company Contact Information
TATA CONSUMER PRODUCTS LIMITED
11/13 Botawala Building, 1st Floor, Office No 2-6,
Horniman Circle Fort Mumbai 400 001 India
Phone: +91-22-6121-8400
E-mail: investor.relations@tataconsumer.com
Website: www.tataconsumer.com
Final Thoughts
Applying for the rights issue is purely a personal choice. Make sure you conduct a detailed study of the company and its rights issues before you make an investment decision.
Happy investing
