Tata Consumer Products will purchase compulsorily convertible preference shares (CCPS) held by Tata Realty and Infrastructure (Tata Realty) in TRIL Constructions (TRILC).
Tata Consumer Products has entered into share purchase agreement and a restated shareholders agreement with Tata Realty and TRILC on 3 November 2021 to purchase CCPS held by Tata Realty in TRILC. Tata Consumer will also make an additional investment by way of subscription of CCPS of TRILC.
Tata Consumer will pay a consideration of about Rs 47.13 crore to Tata Realty for acquiring CCPS held by it in TRILC. It will infuse about Rs 22.87 crore in TRILC as additional investment. Both the transactions will cumulate to a total consideration of Rs 70 crore.
With the existing investment of the company in TRILC and upon completion of the above transaction, the company would be entitled to 80.25% stake of TRILC on a fully diluted basis. The earlier holding by the company in TRILC on a fully diluted basis was 48.4% of the paid-up share capital.
TRILC is primarily engaged in the business of development of real estate. It is an SPV formed by the company and Tata Realty to develop a land parcel in Bengaluru. Post transactions, TRILC will become a subsidiary of Tata Consumer.
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The aforesaid transaction is subject to the fulfillment of various terms and conditions as specified in the 'transaction agreements'.
On a consolidated basis, Tata Consumer Products reported 4% increase in net profit to Rs 268 crore in Q2 FY22 from Rs 257 crore in Q2 FY21.
For the quarter ended Q2 FY22, revenue from operations stood at Rs 3,033 crore, rising 9% year on year on reported basis and growing 11% on a like to like basis mainly driven by growth of 14% in India Beverages and 23% growth in India Foods business. International business revenues growth, excluding exited businesses, was flat.
Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings.
Shares of Tata Consumer Products rose 0.11% to Rs 827.70 in the special one-hour Muhurat trading session on Thursday, 4 November 2021.
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