A 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 Fundraising: Tata Consumer approves Rs 6,500-crore fundraising plan through commercial papers and rights issue to pay for recent acquisitions of Capital Foods and Organic India. The company will raise funds through the issuance of commercial papers for bridge funding and issue of equity shares through rights issue. Detailed terms of the rights issue will be announced later. The acquisitions align with Tata Consumer s strategy to become a strong player in the F&B industry with offerings in packaged foods, pantry-platform, cuisines, and organic products.
Tata Consumer Fundraising: 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 proposed acquisition of stakes in Capital Foods Private and Organic India.
Tata Consumer Acquisitions: As per the filing, TCPL will acquire 75 per cent stake in Capital Foods at an enterprise value of Rs 5,100 crore and 100 per cent stake in Organic India, a food and beverages and herbal and traditional supplements brand for Rs 1,900 crore.