Tata Consumer Products Share Price Today: Shares of Tata Consumer Products fell more than 3% to a low of Rs 1217.40, intraday. The stock price of Tata Group company dropped a day after its board approved raising capital through a rights issue, with a ratio of 1:26. The company will be raising Rs 3,000 crore. However the rights issue price decided is at 35% discount to the closing price on July 23.
The rights shares will be offered to shareholders on a 1:26 ratio, which will decrease their shareholding in the company. It means that for every 26 shares held one rights equity share will be allotted. The company will be floating 36.65 million rights equity shares, This breaks down to Rs 818 per rights equity share. The company has set July 27 as 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 the multiple of 26 (Twenty-six), the fractional entitlement of such Eligible Equity Shareholders shall be ignored in the computation of the Rights Entitlement,” said the company in an exchange filing.
However, the eligible equity shareholders whose fractional entitlements are being ignored will be given preferential consideration for the allotment of one additional rights equity share each if they apply for additional rights equity shares over and above their rights entitlement, if any, subject to the availability of rights equity shares in the Issue post allocation towards rights entitlements applied for.
The stock of Tata Consumer Products has given a return of 6.5% in the past five days. It has raised investors’ wealth by 8.5% in the last six months. Similarly, the shares of the FMCG company have given more than 45% in the past one year and 376% in the last five years.
To give a comparison, the benchmark Nifty 50 has fallen 0.25% in the past five days. However, it has risen 14% in the past six months and more than 24% in the last one year. In the long term, the index comparison 50 big stocks gave a return of 116% in the last five years.