Tata Consumer Products Limited on Friday announced that the Board of Directors of the Company at its meeting held has considered and approved the fund raising proposals, the company announced through an exchange filing.
The approved fund-raising proposals are as follows:
1. Raising of funds through the issuance and allotment of Commercial Papers, for an amount not exceeding Rs 3,500 crores, to be utilized for bridge funding to facilitate the payment of consideration for proposed acquisition of stakes in Capital Foods Private Limited and Organic India Private Limited.
2. Raising of fund by way of issue of equity shares of the Company of face value Rs 1 each through Rights Issue for an amount not exceeding Rs 3,000 crores to the eligible equity shareholders of the Company as on the record date (to be determined by the ‘Capital Raising Committee’ of the Board in due course) subject to receipt of statutory / regulatory approvals, as may be applicable in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosures Requirements) Regulations, 2018 and other applicable laws, said via regulatory filing.
The company through the exchange filing also announced plans for a rights issue, and the detailed terms, such as the issue price, rights entitlement ratio, record date, timing, and payment terms, will be decided by the Board or the 'Capital Raising Committee' in due course. This decision will be made in accordance with applicable laws and is subject to necessary approvals. The rights issue aims to facilitate the company's capital-raising efforts.
Tata Consumer Products Limited shares
The shares of Tata Consumer Products Limited on Friday at 11:32 am IST were at Rs 1,163.20, up by 1.43 per cent.