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Tata Consumer Products gains on acquiring 75% equity share capital in Capital Foods
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Tata Consumer Products is currently trading at Rs. 1138.10, up by 8.15 points or 0.72% from its previous closing of Rs. 1129.95 on the BSE.
The scrip opened at Rs. 1138.85 and has touched a high and low of Rs. 1145.55 and Rs. 1134.10 respectively. So far 22258 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1216.30 on 15-Jan-2024 and a 52 week low of Rs. 685.00 on 16-Mar-2023.
Last one week high and low of the scrip stood at Rs. 1149.00 and Rs. 1108.00 respectively. The current market cap of the company is Rs. 108423.07 crore.
The promoters holding in the company stood at 34.42%, while Institutions and Non-Institutions held 42.69% and 22.89% respectively.
Tata Consumer Products has acquired 75% of the issued equity share capital of Capital Foods. The balance 25% will be acquired within 3 years, as per terms of the Share Purchase Agreement (SPA) and Shareholders’ Agreement (SHA). This move is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market in fast growing/high margin categories.
Capital Foods has strong umbrella platform brands with a portfolio of unique products for in-home consumption in fast growing categories. This acquisition will enable Tata Consumer Products to expand its product portfolio and further strengthen its pantry platform. There are significant synergy benefits with the existing businesses of Tata Consumer Products in areas spanning distribution, logistics, exports and overheads. The overall size of the categories in which Capital Foods operates in is estimated at Rs 21,400 crore. Structural growth drivers for the category include continued growth in income levels, evolving consumer preferences leading to increased salience of global cuisines in in-home cooking and increasing need for convenience.
Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company’s portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals.
