Tata Coffee hits upper circuit on Barista stake sale

DALAL STREET SPIKES

Tata Coffee stock hit a 10 per cent upper circuit after the company announced that it has sold its entire stake in Barista Coffee Company to the Sterling Infotech Group, for an unmentioned amount.

On the BSE alone the counter witnessed impressive volumes of more than 1.34 lakh shares. Dealers said that there were pending buy orders at this counter in Monday's trading. The stock closed at the upper circuit of Rs 298.40.

Tata Coffee is the largest integrated coffee company in Asia with a production of 10 million kg of coffee. The stock gained momentum due to the fall in coffee production in Brazil and the resulted firming of coffee prices in the global markets.

Analysts tracking the sector said that global coffee prices are expected to shot up further primarily due to the sharp fall in world production in the current fiscal year.