Tata Consumer Products Ltd (TCPL) is likely to announce a Rs 3,500-crore rights issue to fund its Rs 7,000-crore acquisitions of Capital Foods and Organic India, said a report on Monday.
The Economic Times’ report comes days after TCPL announced the mega acquisitions to augment its portfolio.
The overall size of the categories in which Capital Foods operates is estimated at Rs 21,400 crore, said TCPL. Organic Foods, which is in primarily organic food and beverage products, will enable the creation of health and wellness platform, said TCPL.
TCPL on Friday announced acquisition of 100 per cent equity shares of Capital Foods, owner of the brands Ching’s Secret and Smith & Jones, for Rs 5,100 crore.
”The company has agreed to acquire 75 per cent shareholding of the target company. Balance 25 per cent shareholding of the target company to be acquired within 3 years,” it said.
Besides, TCPL will acquire a 100 per cent stake in Fabindia-backed Organic India in an all-cash deal, at an enterprise value of Rs 1,900 crore, along with an additional earnout for the shareholders linked to FY2025-26 audited financials of the company.
The acquisition of Capital Food 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 is estimated at Rs 21,400 crore,” it said.