Opportunity to buy shares of TATA's company at 35% discount, read detailed information

Tata Consumer Products Rights Issue: Tata Consumer Products Limited announced details of its rights issue on Tuesday, July 23. The company wants to raise up to Rs 3,000 crore through this.

The board of Tata Consumer Products had approved the rights issue in January this year. Tata Consumer plans to issue 3.66 crore rights equity shares at a total value of Rs 2,997.77 crore. Tata Consumer Products has set a record date of Saturday July 27, 2024 for its rights issue. The rights issue will open on August 5 and close on August 19, 2024.

1 rights equity share for 26 shares

Each rights share has been priced at Rs 818, a 35 per cent discount to Tata Consumer Products' closing price on Tuesday. Existing shareholders of Tata Consumer Products will be eligible to receive 1 right equity share for every 26 shares held by them as on record date.

Shareholders holding less than 26 shares of the company will get zero rights in this issue. Such shareholders will be eligible to apply for additional rights equity shares and in case of application they will be given preference in allotment of one additional rights equity share. However, they cannot transfer those shares to third parties.

In a simple example, a person who owns 2600 shares of Tata Consumer Products will get 100 shares at a discount of 35% through this rights issue. In this way, total 2700 shares will be in his account.

What is a rights issue?

A rights issue is one in which a company raises funds by selling additional shares to its existing shareholders. A person is not eligible to participate in the rights issue if he does not hold shares in the company on the record date.

Shares of the company closed at Rs 1,258 with a rise of 4.42 percent on Tuesday. In the last one year, the shares of the company have seen an increase of 45.75 percent.