 "Tata Consumer Products to raise $782 mn through issue of commercial papers")
India's Tata Consumer Products said on Friday it will raise up to 65 billion rupees (about $782 million) through the issue of commercial papers and rights issue of shares.
The company said it will raise 35 billion rupees via commercial papers, which will be used to fund some of the payment for its acquisition of two packaged food brands, Capital Foods and Organic India.
The remaining 30 billion rupees will be raised through a rights issue. The company did not specify what this will be used towards.
Last week, Tata Consumer announced that it would buy a 75 per cent stake in Capital Foods for 51 billion rupees and wholly acquire Organic India for 19 billion rupees.
Capital Foods makes packaged food and condiment brands such as 'Ching's Secret' and 'Smith Jones' while Organic India makes a line of ayurvedic health products.
The Tata group-owned retailer says it expects a total turnover of between 10.5 billion rupees and 10.7 billion rupees from the two companies for fiscal 2024.
Tata Consumer is due to report its December-quarter results in the first week of February. Its shares have risen about 7 per cent so far this year, following a ~42 per cent rise in 2023.