Following the announcement of two potential acquisitions valued at INR 7,100 crore, Tata Consumer Products Ltd. is considering raising funds through a combination of debt issuance and equity from existing investors.
In an exchange filing on Friday, the company stated that a board meeting is set for January 19 to discuss various matters, including the potential fundraising through the issuance of commercial papers or debentures, a rights issue, or any other suitable mode as determined by the board.
Tata Consumer Products’ Dual Acquisition: Capital Foods and Organic India
The decision to raise capital comes as the Tata Group company has agreed to acquire Capital Foods Pvt., the owner of Ching’s Secret and Smith & Jones, and Fabindia-Backed Organic India, to expand its portfolio of high-margin businesses.
Continue Exploring: Tata Consumer Products seals INR 7,000 Crore dual acquisition, adding Capital Foods and Organic India to portfolio
The Tata Group agreed to acquire the Ajay Gupta-founded Capital Foods through an all-cash deal, as revealed in its exchange filing on Friday. The phased acquisition is set at an enterprise value of INR 5,100 crore.
Tata Consumer also intends to acquire Organic India with an enterprise value of INR 1,900 crore, aiming to establish a health and wellness platform. The company has entered into a share-purchase agreement with Fabindia for an all-cash deal, according to a separate exchange filing.