Details of the Tata Coffee Merger with Tata Consumer Products

Details of the Tata Coffee Merger with Tata Consumer Products

Details of the Tata Coffee Merger with Tata Consumer Products:  Tata Consumer Products Limited (TCPL) and Tata Coffee Limited (TCL) said they would merge their companies, which will happen on January 1, 2024.

Details of the Tata Coffee Merger with Tata Consumer Products

As part of the plan, Tata Coffee Limited’s farm business will be split off into a new company called TCPL Beverages and Foods Limited (TBFL). Tata Coffee Limited’s other businesses will then be combined into Tata Consumer Products Limited.

The company has set January 15, 2024 as the record date to find out who owns Tata Coffee shares and who will get shares of Tata Consumer Products. That notice can be found here 578.

Since this is the case, Tata Coffee Limited shares will not be able to be traded on stock markets after January 15, 2023, and they will not show up in your Kite holdings.

It says that Tata Coffee Limited owners will get the following under scheme 216:

  • Tata Consumer Products gives one share for every 22 shares owned for the split of TCPL Beverages and Foods.
  • 14 Tata Consumer Products shares for every 55 Tata Coffee shares owned in the deal to merge Tata Coffee and Tata Consumer Products.

When can I expect to get my Tata Consumer Products shares?

It can take anywhere from 30 to 45 days from the record date for shares to be credited. Once the shares are added to the demat account, CDSL will send you an email.

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When can the given shares be bought and sold on the exchanges?

Once the company has the shares, it needs to get permission from the exchanges to sell them. As soon as the approvals are given, the shares will begin trading on the markets.

What if I don’t have between 22 and 55 Tata Coffee shares?

You can get shares of Tata Consumer Products even if you already own between 22 and 55 shares of the company. In this case, if you own 10 shares of Tata Coffee, you will get

You can get 0.4 shares when TCPL Beverages and Foods splits up. This is because you own 22 shares, so 1 share for every 22 shares you own. Because this leads to a fractional claim. In this case, the money you pay for fractional shares will go into your main bank account.

You will get 2.5 shares when Tata Coffee and Tata Consumer Products join. This is because you will get 14 shares for every 55 shares you own. The payment for 2 shares will be sent to your demat account, and the remaining 0.5 shares will be sent to your main bank account.

When am I going to get the amount for partial entitlement?

If you are entitled to a fraction of the money, the equivalent amount will be sent straight to your main bank account after the company’s trustee sells the shares.

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