Tata Consumer Share Price Drops 3% as Reports of Haldiram's Stake Purchase are Refuted

Multiple media outlets reported that Tata Group's FMCG arm had been in discussions with Haldiram's, aiming to acquire a significant stake in the renowned snacks maker and restaurant operator. However, negotiations encountered a hurdle as Tata Consumer expressed discomfort with the substantial $10 billion valuation sought by Haldiram's.

Tata Consumer Products

Stock Decline Amidst Clarification

Following Tata Consumer Products' announcement on Wednesday that it was not currently engaged in talks to acquire a 51% stake in Haldiram's, the company's share price experienced a nearly 3% decline on Thursday.

During the intraday session, Tata Consumer's share price fell by 2.9%, reaching a low of Rs 853.85 on the Bombay Stock Exchange (BSE). As of the time of writing, Tata Consumer was trading 2.66% lower at 856.50.

Official Statements from Tata Consumer and Haldiram's

In response to clarification requests from the National Stock Exchange (NSE) and the BSE, Tata Consumer Products Limited (TCPL) stated in a regulatory filing that it was "not in negotiations as reported" for the acquisition of Haldiram's. The company further emphasized its policy of refraining from commenting on market speculation.

Haldiram's also issued a statement on the matter, categorically denying the recent reports of a 51% stake sale. They clarified that they were not engaged in any discussions with Tata Consumer Products regarding such a transaction.

TCPL's portfolio includes prominent brands such as Tata Salt, Tata Tea, Tetley, Tata Coffee, Tata Soulfull, Eight O’clock (in the tea, coffee, and beverages segment), as well as Himalayan and Gluco+ in the liquid beverages category.