Two companies of Tata Group are going to merge in the next one year. Tata Coffee Limited is going to merge with Tata Consumer Products Limited (TCPL) which will be completed in the next 12-14 months. Both the companies are in the early stages of becoming part of the regulatory process.
“This merger will take 12 to 14 months to complete. That is the timeline,” Tata Coffee Ltd executive director and chief financial officer K Venkataramanan told analysts at an investors’ meeting.
what will happen to the shareholders
TCPL has announced the merger of all Tata Coffee businesses with its or its subsidiaries as part of a restructuring plan with a strategic priority to improve synergy and efficiencies. Under this merger scheme, the shareholders of Tata Coffee will get three equity shares of TCPL for every 10 equity shares held by them.
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Venkataramanan said, “Tata Coffee has a good order book and customers are asking to continue with the consignments,” Venkataramanan said, noting that the current geo-political situation would not be affected much.
what is share price
Let us inform that the share price of Tata Coffee is Rs 221.20 and that of Tata Consumer Products Limited is at Rs 824.35. So far this year this stock has given a return of 10.21%. At the same time, the share of Tata Coffee has jumped 3.34% this year.
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