Tata Consumer Unveils Rs 3,000 Crore Rights Issue; Ex-Date Tomorrow!

Tata Consumer Products announced a Rs 3,000 crore rights issue on Tuesday. In this rights issue, 3.67 crore rights equity shares will be issued to eligible shareholders. The ex-date, which is when the stock starts trading without the rights, is tomorrow, July 26.

Rights Issue

The record date for the rights issue is July 27, which falls on a Saturday, a market holiday. This means that the stock will start trading on an ex-rights basis from Friday, making today the last date to buy shares to be eligible for the rights issue.

“The Rights Equity Shares are being offered on a rights basis to eligible equity shareholders in the ratio of 1 (one) Rights Equity Share for every 26 (twenty-six) fully paid-up Equity Shares held on the record date. For Rights Equity Shares being offered under this issue, if the shareholding of any of the eligible equity shareholders is less than 26 (twenty-six) Equity Shares or not in multiples of 26 (twenty-six), the fractional entitlement of such eligible equity shareholders shall be ignored in the computation of the Rights Entitlement,” the company informed via a filing to the exchanges.

Additionally, Tata Consumer Products mentioned in their filing that the rights issue will be priced at Rs 818 per share, which includes a premium of Rs 817 per share. The rights issue will open on August 5 and close on August 19.

As of around 12:30 pm, shares of Tata Consumer Products were trading 1.3% lower at Rs 1,215 on the BSE.

In summary, Tata Consumer Products is offering a rights issue to raise Rs 3,000 crore by issuing 3.67 crore rights equity shares. The ex-date is July 26, and the record date is July 27. Shareholders will be able to buy one new share for every 26 shares they hold, at a price of Rs 818 per share. The rights issue will open on August 5 and close on August 19.