Shares of Tata Coffee Ltd climbed nearly 13 per cent on Wednesday. Earlier, Tata Consumer Products Limited (TCPL) had announced the merger of all the businesses of this company with itself as part of the restructuring plan. Shares of Tata Coffee Limited (TCL) gained 12.91 per cent to Rs 221.60 on the BSE. Shares of Tata Consumer Products also rose 5.28 per cent to 782.50.
TCPL had on Tuesday announced the merger of all the businesses of TCL with itself. The plantation business of TCL will be merged with TCPL Beverages & Foods Limited (TBFL), a wholly owned subsidiary of TCPL, the company said in a statement. The rest of the business, including TCL’s extraction and branded coffee business, will be merged with TCPL.
The effect of the information of this decision was also visible in the National Stock Exchange. The company’s stock price climbed up to 4% on Wednesday morning. Investors are looking very excited after this announcement made by the company. According to Nomura, the company’s supply chain will improve after this merger. Due to which 3% to 4% business can increase.