Bangalore, March 14
Tata Coffee Ltd has decided to make a rights issue of equity shares in the ratio of 2:5 (i.e. 2 new equity shares of face value of Rs 10 each for every five existing shares held). The rights issue would be within a price band of Rs 220 to Rs 260 per share including premium. The board of directors, which met on Monday, has decided to make the rights issue for which the record date is likely to be announced soon. The company expects to use the proceeds to fund its expansion plans.
Following the announcement, Tata Coffee shares closed higher by 2.4 per cent on BSE at Rs 389.4 on Tuesday. Tata Coffee is planning to expand its operations both in India and overseas. The company proposes to set up a freeze-dried coffee plant in Theni and an instant coffee manufacturing facility at Uganda.