Tata Consumer Products Share Price This Week: 2 Big Deals Propel Surge

In a week marked by dynamic market movements, Tata Consumer Products (TCP) emerged as a significant player, witnessing a notable surge in its share price. The impetus behind this upward trajectory was the company’s strategic move of acquiring two prominent entities in back-to-back deals.

Tata Consumer Products announced its intention to acquire up to 100 percent stake in Organic India, a business owned by Fabindia, dealing in tea, infusions, herbal supplements, and packaged foods. The all-cash deal, valued at Rs 1,900 crore, was formalized through a share purchase agreement with Fabindia Ltd.

This announcement closely followed TCP’s first acquisition of the week, where it disclosed the acquisition of a 100 percent stake in Capital Foods, known for its Ching’s Secret and Smith & Jones brands. This all-cash deal amounted to Rs 5,100 crore, solidifying TCP’s strategic expansion plans.

The estimated turnover of Organic India for FY24 is around Rs 360 to Rs 370 crore. Despite a gradual decline in sales from Rs 394.8 crore in FY21 to Rs 324.4 crore in FY23, the deal values the company at a little over five times its FY24 sales.

The market positively responded to TCP’s dynamic acquisitions, reflecting investor confidence in the company’s strategic moves and its potential for sustained growth. As the acquisitions are set to unfold, investors are keenly observing TCP’s share price for further insights into the impact of these strategic endeavors on the company’s market position and future prospects.

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