Tata Consumer Shares Rallied on the News of Corporate Reorganisation
TATA Consumer Products shares rallied today on the news of the merger and reorganisation of corporate structure.
The share jumped nearly 5 per cent in the morning trade on March 30 after the company announced a merger plan and acquisition of stake in a UK subsidiary.
The plantation business of Tata Coffee Ltd (TCL) will be demerged into TCPL's wholly-owned arm TCPL Beverages & Foods Ltd (TBFL).
The remaining business of TCL, consisting of its extraction and branded coffee business, will be merged with TCPL, the company said in a statement.
The company’s goal is to reorganize its India and overseas business to simplify the corporate structure, align and synergize its business.
The share had touched a 52-week high of Rs 889 on September 7, 2021 and dropped to a 52-week low of Rs 614.25 on May 7, 2021.