BackTata Global shares fall on decision of merging unit with self
Shares fall 6.63% after Tata Global announced the merger of Mount Everest Mineral Water with itself
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Mumbai: Shares of Tata Global Beverages Ltd fell on Wednesday although it reported robust quarterly earnings because its decision to merge a subsidiary with itself weighed on investor sentiment.
Tata Global shares fell by 6.63% to ₹ 144.40 apiece on BSE, while the 30-share benchmark Sensex declined 0.43% to 20,194.40 points.
Tata Global was the fifth most traded stock on BSE.
The beverages company said on Tuesday said fiscal second-quarter consolidated profit increased by 51% to ₹ 180.03 crore compared with a year ago. Total income increased to ₹ 1,965.70 crore from ₹ 1,899.08 crore.
“The performance is not bad," said Deven Choksey, managing director and chief executive of K.R. Choksey Shares and Securities Pvt. Ltd, a brokerage. “The merger seems to be weighing on the stock."
The company said on Tuesday that it will merge Mount Everest Mineral Water Ltd, maker of Himalayan bottled water, with itself. The merger will be effective 1 April after all the requisite statutory and court approvals are obtained.
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