Shares of Tata Consumer Products Ltd rose nearly 3% on Thursday's early trade on the back of the news reported by Economic Times that the company is set to acquire Bisleri International at approximately 7,000 crore rupees.
In an interview with CNBC-TV18, Ramesh J Chauhan, chairman of Bisleri International Pvt Ltd, confirmed that they are in discussion with Tatas. He also mentioned that they would like to hold on to some stake. "Other players are there in the fray, but cannot share," added Chauhan.
ICICI Direct Research believes that with the acquisition Tata Consumer will become biggest company in packaged water category with Bisleri, Himalayan, and Tata Water Plus brands.
"At 7,000 crore rupees, the deal valuation would be close to 3x EV to FY23 sales. Given strong Bisleri Brand & possibilities of brand extension, we believe this would be positive acquisition for Tata Consumer," said the brokerage.
Tata Consumer Products' weekly average delivery volume is 34.09%, and the stock is trading nearly 3% above 200-day average.
According to MintGenie poll, 24 analysts recommend 'buy' rating on the stock.