Shares of Tata Consumer Products Limited gained over 2 percent to Rs 1,146 to touch a new 52-week high on January 12 on the buzz that the company is all set to acquire Capital Foods and FabIndia-backed Organic India, ending months of negotiations, the Economic Times reported.
The acquisition assumes significance for the FMCG giant as it provides access to products with a broader taste profile, entry into new markets, and an expanded portfolio of organic items catering to consumers seeking healthier alternatives.
At 9:20 am, the counter was trading at Rs 1,143, up 2.3 percent from the previous close on the NSE. In the last year, the stock has gained 48.5 percent on the exchanges.
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TCPL will be buying a controlling stake in Organic India for a Rs 1,800 crore valuation from Fab India. Fabindia, backed by Premji Invest and Lighthouse Capital, owns over 40 percent stake in Organic India, based in Lucknow. As for Capital Foods, the company will acquire 75 percent from existing investors.
The acquisition enables Tata Consumer to go head-to-head with Nestle's Maggie, which currently holds a 60 percent market share. Other players in the category include Top Ramen, Wai Wai and Patanjali.
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