Tata Consumer Products Ltd is one of the leading companies of Tata Group, their products are food and beverages business in India and Internationally. It is the second largest tea company which has leadership in many markets. Tata consumer rights issue for 2024 is the new topic in the market as company is providing rights to buy shares in discounted price.
Tata consumer rights issue for 2024
what is Rights issue?
- Rights issue is a process of issuing shares to the existing shareholders at a discounted price to the current market price.
- In this the existing shareholders will get the benefit.
- The main advantage to the company from rights issue is to raise the additional capital. Here Company is providing rights initially to existing share holder depending on number share they already hold, so that they can have benefit and then to other share holders if at all company target is not yet met.
- Shareholders holding less than 26 shares of the company will have zero rights entitlement in the issue.
Difference between Bonus issue and Rights issue?
Bonus shares issued to the existing shareholders who own the share of the company on the basis of ratio it does not increase the capital of the company, in another way Rights issue is issuing the shares to the existing shareholders at a discounted price. Here the person if they interested, they can buy the shares at lower price than the existing market price. This will increase the capital of the company.
In Bonus shares the person does not pay any extra amount to the company, on the other hand the person has to buy the shares at discounted price.
Bonus will be proving by the company from their reserves or profits it doesn’t need additional capital from the investors ,In Rights issue their main intension is to increase the additional capital to the company.
Tata Consumer right issue 2024-Important Dates
- Tata Consumer rights issue record date is July 27.
- The rights issue period will begin on August 5 and end on August 19, according to a company statement.
- Tata Consumer rights issue has been fixed at Rs 818 per share. The company will issue a total of 3,66,47,492 shares at a discount of nearly 34 per cent.
Rights issue important steps with example:
As per Chittorgarh.com ,below are few important steps share holder should keep an eye.
Rights Issue Date
- Record DateA record date is a cut-off date to determine eligible shareholders for the rights issue.
- Issue Opening DateThe issue opening date is a date when one can start applying for the rights issue.
- Issue Closure DateThe issue closing date is the cut-off for applying for the rights issue. No applications can be made post the issue closure date.
- Rights Entitlement Trading DatesThese are the on-market renunciation of rights entitlements dates within which the rights entitlements can be traded on the stock exchange. The trading commences with issue opening date and generally closes 3-4 working days before the issue closure date.
- Allotment DateThe allotment date is when the company finalizes the allotment based on the applications received and the Demat holding list of the rights entitlements.
- Date of creditThe credit date is when the rights shares are credited to the Demat account once the allotment is finalized.
- Date of commencement of trading or Listing dateThis is the date when the rights issue shares will get listed on the stock exchange and trade along with other equity shares.
About Tata Consumer Products Ltd:
- Tea
It includes products like Tata tea premium, Tata tea Agni, Tetley, Gemini, Tata tea gold, Kannan Devan etc.,
- Coffee
Tata coffee grand, Sonnets etc.,
- Food
- Tata salt, Tata soulful, Tata simply better, Plant based meat, Tata GOFIT smith and jones etc., Organic packed foods
- Liquid items
Tata gluco, Tata Frisky, Tata copper and many more
- Himalayan honey and preserves
- Out of home retails
Starbucks.
Fundamentals of Tata consumer products Ltd.
| Market cap | 1.2LCr |
| P/E Ratio | 100.97 |
| Current market price | 1194Rs |
| 52 weeks low | 818.26 |
| 52 weeks high | 1253.69 |
| Returns in 1 year | 42.55% |
| Return in 5 years | 349.81% |
Vision of the company
To build better lives and thriving communities
Mission of the company
Passionately growing and innovating everyday
Empathy of the company
Understanding every individual needs before acting, respecting diversifies of thought and the value of collaboration.
Conclusion
Tata consumers are in the top 10 of FMCG in India, Tata salt is the largest salt brand running in India and second largest in tea brand and third largest tea brand in UK (Tetley Tea).
This company is not for recommendations to buy/sell we didn’t do any Fundamental and Technical analysis about this stock please do your own research before investing.
FAQ
- Who is the CEO of Tata Consumers?
The CEO and managing director Tata Consumer Products is Sunil D’Souza.
- What is the goal of Tata Consumer Products?
Their main aim is to Understanding every individual needs before acting, respecting diversifies of thought and the value of collaboration. And aim to provide high quality and innovative products to the consumers.
- Is Starbucks owned by Tata?
Tata Starbucks Private Limited, formerly known as Tata Starbucks Limited, is a 50:50 joint venture coffee company, owned by Tata Consumer Products and Starbucks Corporation, that owns and operates Starbucks outlets in India.