In the early hours of trading on Thursday, the shares of Tata Consumer Products Limited experienced a decline of more than 2 percent. This downturn occurred just one day after the stock had closed on a positive note, posting a gain of over 4 percent.
At precisely 9:48 a.m. on the National Stock Exchange, Tata Consumer Products shares had dipped by 2.37 percent, reaching a trading price of Rs 858.05. Remarkably, this downturn positioned the company as the foremost loser within the Nifty50 index.
The decline in the shares of Tata Consumer Products came on the heels of a report that surfaced the previous day from news agency Reuters. According to this report, Tata Consumer Products Limited had purportedly engaged in discussions concerning the acquisition of a majority stake in Haldiram's, a prominent player in the snack industry. However, the reported valuation of $10 billion sought by Haldiram in these negotiations had apparently not met with Tata Consumer Products' satisfaction.
In response to this report, Tata Consumer Products promptly refuted its veracity through an official filing with the stock exchange. The company clarified that it was not, in fact, engaged in any negotiations as indicated in the aforementioned news article. This clarification was issued after the close of market hours on Wednesday.
Furthermore, Tata Consumer Products clarified that it had not communicated any information to the stock exchanges that would warrant disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
It is worth noting that the Reuters report had also alluded to the possibility of Haldiram's exploring the potential sale of a 10 percent stake to private equity firms, with Bain Capital among the names under consideration. The report hinted at Tata Consumer Products Limited being among the prospective stakeholders involved in these discussions.
It is pertinent to mention that Tata Consumer Products Limited boasts a diverse portfolio that extends beyond the boundaries of India. The company's holdings include UK-based Tetley Tea, and it has forged a strategic partnership with Starbucks in India. These global ventures underscore the company's international presence and its ambitious foray into the consumer products sector on a global scale.
