Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Tata Global Beverages and Tata Chemicals to Merge Their Consumer Businesses

As many as 114 shares of Tata Global will be issued for every 100 shares of Tata Chemicals, Deutsche Bank raised its target price on the Tata Chemicals stock to Rs 715 from Rs 695 earlier.

Trending Desk

Updated:May 16, 2019, 11:04 PM IST
facebookTwitterskypewhatsapp
Tata Global Beverages and Tata Chemicals to Merge Their Consumer Businesses
As many as 114 shares of Tata Global will be issued for every 100 shares of Tata Chemicals, Deutsche Bank raised its target price on the Tata Chemicals stock to Rs 715 from Rs 695 earlier.
Loading...

Tata Global Beverages Ltd shares jumped as much as 10.5% in intraday trade on Thursday, while those of Tata Chemicals Ltd surged 8.8% as markets cheered Tata Group’s move to bring all its consumer businesses under one unit.

Tata Global Beverages was trading at Rs 217.45, up 9.1%, while Tata Chemicals stock was up 7.8% to Rs 600.25.

Tata Group on Wednesday said that it was transferring all its branded food businesses from Tata Chemicals to Tata Global Beverages. The consumer product businesses of Tata Chemicals comprise of Tata Salt, Tata Sampann (which sells spices, pulses and snacks) and also the lesser-known Tata Dx (a detergent brand).

Post-restructuring, Tata Global Beverages will be renamed Tata Consumer Products Ltd. The new entity will have a turnover of Rs 9,099 crore (25% more than that of Tata Global), with earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 1,154 crore.

According to the scheme, 114 shares of Tata Global will be issued for every 100 shares of Tata Chemicals. After the deal announcement, Deutsche Bank raised its target price on the Tata Chemicals stock to Rs 715 from Rs 695 earlier, while maintaining its buy rating.

Deutsche Bank said the deal unlocks consumer business valuation. It likes the merger for the strong brand value of Tata Salt. Strong distribution capabilities can also be leveraged by the combined business, said Deutsche Bank. “The transaction EV (enterprise value) of Rs 5,800 crore is 10% higher than what we had built into the target,” said the note by the investment bank.

Deutsche Bank also maintained its hold rating on Tata Global Beverages with a target of Rs 240 per share.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 55.40 2.40
Zee Entertain 279.25 -9.58
Astral Poly Tec 1,012.25 -12.09
Axis Bank 635.00 -0.50
HDFC Bank 1,118.50 1.58
Company Price Change %Gain
Astral Poly Tec 1,011.40 -12.29
HDFC Bank 1,118.70 1.66
Zee Entertain 279.00 -9.65
Yes Bank 55.45 2.40
Maruti Suzuki 6,032.00 1.58
Top Gainers
Company Price Change %Gain
Yes Bank 55.40 2.40
Adani Ports 367.65 1.59
HDFC Bank 1,118.50 1.58
Hero Motocorp 2,556.10 0.94
Maruti Suzuki 6,026.60 0.92
Company Price Change %Gain
Yes Bank 55.45 2.40
Maruti Suzuki 6,032.00 1.58
HDFC Bank 1,118.85 1.68
Hero Motocorp 2,559.10 1.05
M&M 524.95 1.09
Top Losers
Company Price Change %Gain
Zee Entertain 279.25 -9.58
NTPC 119.30 -1.97
Power Grid Corp 197.75 -1.69
ONGC 122.45 -1.49
Coal India 190.65 -1.45
Company Price Change %Gain
NTPC 119.30 -2.01
Power Grid Corp 197.85 -1.64
ONGC 122.45 -1.57
Coal India 190.60 -1.47
Tata Motors 122.80 -1.17

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results