Tata Consumer To Consider Fundraising On Jan. 19

Tata Consumer Products Ltd., which announced two proposed acquisitions in deals worth Rs 7,100 crore, will consider fundraising via a debt issuance and equity from existing investors.

A meeting of the board is scheduled to be held on Jan. 19 to consider, among other things, fundraising by debt issue in the form of commercial papers or debentures and a rights issue, or any other appropriate mode as may be decided by the board, the company said in an exchange filing on Friday.

The plan to raise capital comes as the Tata Group company agreed to buy Capital Foods Pvt., the owner of Ching’s Secret and Smith & Jones, and Fabindia-Backed Organic India to expands its portfolio of high-margin businesses.

The Tata Group agreed to acquire the Ajay Gupta-founded Capital Foods through an all-cash deal, in a phased manner at an enterprise value of Rs 5,100 crore, according to its exchange filing on Friday.

Tata Consumer also plans to acquire Organic India at an enterprise value of Rs 1,900 crore to create a health and wellness platform. The company has entered into a share-purchase agreement with Fabindia for an all-cash deal, according to a separate exchange filing.