Tata Coffee and Tata Consumer surge on merger plan & more

NIFTY50: 21,731 ▼ 47 (-0.2%)
 SENSEX: 72,240 ▼ 170 (-0.2%)

• Benchmark indices snapped five day winning streak, amid some profit booking in last trading session of 2023
• In all, 31 of the NIFTY50 stocks closed in the red
• Brent crude oil prices traded at $77.6 per barrel, recovering from yesterday’s loss

Among the NIFTY sectoral indices, Auto (+1.1%) and FMCG (+0.8%) were the top gainers, while Oil & Gas (-0.9%) and PSU Bank (-0.6%) were the top losers.

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⭐ Tata Coffee and Tata Consumer Products hit 52-week highs

Shares of Tata Coffee and Tata Consumer Products (TCPL) hit fresh 52-week highs today, rising 4.0% and 4.6%, respectively. This comes ahead of the proposed merger of Tata Coffee with parent company Tata Consumer Products, which comes into effect on 1 January 2024. As part of the arrangement, the plantation business of Tata Coffee will be demerged into TCPL Beverages & Foods, another entity of the Tata Group. Meanwhile, the company’s remaining business, consisting of its extraction and branded coffee business, will be merged with Tata Consumer Products. 

⭐Kalpataru Projects gains on multiple order win

The engineering & construction company’s shares closed 6.4% higher today after it secured new orders worth ₹3,244 crore. The company's buildings & factories business has received a contract from a reputed developer to construct residential buildings in south India. Additionally, it also won an order for the design and construction of an underground metro rail project. Meanwhile, the transmission & distribution division won business from the overseas markets. With these new orders, the company’s total order inflow for FY24 now stands at ₹17,685 crore. 

⭐ Hindustan Foods expands its shoe manufacturing domain  

Shares of Hindustan Foods, a leading contract manufacturing firm, rose nearly 2% today after the company announced a new acquisition. It plans to acquire a sports shoe manufacturing unit located in Haryana for ₹30.72 crore. This acquisition is part of the company’s move to strengthen its presence in the sports shoes segment. Earlier this year, the company unveiled plans to invest up to ₹100 crore in the sports shoes manufacturing domain. 

 ⭐ Power Mech rises on order win 

Shares of industrial services and construction firm closed 3.3% higher at ₹4,290 per share on bagging multiple orders. The company secured two orders worth ₹2,192 crore. One of the orders was from Meenakshi Energy, amounting to ₹674.81 crore. The other order, worth ₹1,517.60 crore, was from the Directorate of Geology and Mining, which requires mining of river bed minerals in Dehradun. Meanwhile, the company's shares are up over 116% on a year-to-date basis.

IPO Corner

⭐ Innova Captab made a muted debut on the exchanges, listing at a premium of just 0.8%. The stock opened at ₹452.1 per share compared to the issue price of ₹448 per share. However, after listing, the stock saw strong traction, rising 20% to close at ₹542.5 apiece.

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What is a share swap?

A share swap is a kind of barter transaction that usually occurs during an acquisition or merger. In such transactions, shares are used instead of cash to make payments. The acquiring company gives some of its shares to the shareholders of the company being acquired. To make the deal fair, each company’s shares are accurately valued, and the final swap ratio is set.

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