In a vote held on November 12, shareholders of Tata Consumer Products Ltd. (TCPL), Tata Coffee Ltd., and TCPL Beverages and Foods Ltd. approved the reorganisation plan of the three businesses.
For every 22 shares of Tata Coffee that are currently owned by shareholders, Tata Consumer Products will issue one equity share. Additionally, new equity shares of the company will be issued to Tata Coffee’s equity shareholders in exchange for the company absorbing the remainder of the company’s business. According to the company’s exchange filing, Tata Coffee shareholders will receive 14 shares of Tata Consumer Products for every 55 shares they own.
The business also stated in its statement that following the aforementioned demerger and amalgamation, Tata Coffee will stand dissolved, without being wound up.