Let’s understand the merger of Tata Coffee with Tata Consumer Products

General
1

Tata Coffee Limited (TCL) and Tata Consumer Products Limited (TCPL) have officially merged their businesses, effective from January 1, 2024. Under the scheme of the agreement, Tata Coffee Limited’s plantation business has been demerged into a distinct entity named TCPL Beverages and Foods Limited (TBFL), while the remaining business of Tata Coffee Limited has been merged into Tata Consumer Products Limited.

The record date was set as January 15, 2024, to identify Tata Coffee shareholders eligible to receive shares of Tata Consumer Products. Trading of Tata Coffee Limited shares on the stock exchanges has been suspended from January 15, 2023, onwards, and these shares are no longer be visible in your Angel One Portfolio.

Tata Coffee Limited shareholders will receive,

  • 1 share of Tata Consumer Products for every 22 Tata Coffee shares held (1:22 ratio) for demerger of TCPL Beverages and Foods
  • 14 shares of Tata Consumer Products for every 55 Tata Coffee shares held (14:55 ratio) for the merger of Tata Coffee with Tata Consumer Products

Now, let’s understand with some examples,

1. What will happen if you have 110 shares of Tata Coffee?

  • For the demerger, you will receive (1/22)x110 = 7 shares.

  • For the merger, you will receive (14/55)x110 = 28 shares.

  • Hence, the total number of Tata Consumer shares to get credited to your demat account is 7+28=35.

2. What will happen if you have 15 shares of Tata Coffee?

  • For the demerger, you are entitled to receive (1/22)x 15= 0.68 shares. However, this is a fractional entitlement, and the amount of this fractional share will be directly credited to your bank account

  • For the merger, you will receive (14/55)x 15 = 3 shares, and the amount of remaining fractional shares i.e. 0.82 shares will be directly credited to your bank account.

  • Hence, the total number of Tata Consumer shares to get credited to your demat account is 3.

When the Tata Consumer shares will be reflected in Angel One Portfolio?

  • TATA Consumer shares resulting from its merger with Tata Coffee will be reflected in Angel One’s portfolio once it gets listed on exchanges. Accordingly, these can be traded on our platform.

What you need to do when the amount of fractional shares doesn’t get credited to your bank account?

  • You need to contact the RTA (Registrar and Transfer Agents)

Thanks for reading.

Dhrubajyoti Bordoloi
Product Manager, Angel One

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