Tata Consumer Denies Haldiram's Stake Acquisition Talks, Stock Dips 2%

Tata Consumer Products experienced a 1.87 percent drop. This decline followed the company's official denial of recent reports suggesting its interest in acquiring a stake in the popular Indian food snack chain, Haldiram's. The previous session had witnessed a surge of over 4 percent in Tata Consumer's stock price, buoyed by the initial reports.

On September 6, Media reports disclosed that Tata Consumer Products was in discussions to acquire a majority stake of at least 51 percent in Haldiram's. However, it was noted that Tata Consumer was not comfortable with the $10 billion valuation proposed by Haldiram's.

In response to the reports, Tata Consumer Products promptly issued a statement through an exchange filing, refuting the claims. "The company is not in negotiations as reported in the above-referred news article," stated Tata Consumer Products, addressing the report.

Haldiram's also echoed this denial during an interview with CNBC-TV18.

During the April-to-June quarter, Tata Consumer's revenue witnessed a notable 12.44 percent year-on-year increase, amounting to Rs 3,741 crore. Simultaneously, the net profit for the quarter recorded a robust 22.02 percent year-on-year growth, reaching Rs 338 crore. Furthermore, the operating profit margins demonstrated a significant expansion of 100 basis points year-on-year, culminating at 15 percent.

Source: Media Reports