Gaining after 5-day of consistent fall, Tata Consumer Products is in the limelight today. The stock opened over 2% higher and went on to go up further by 4.5% to hit an intraday high at Rs.510. It currently trades at around the same high levels.
The stock price has surged on unconfirmed news that its Board has approved a proposal to buy out the vending machine business of Coffee Day for which the asking price is said to be about Rs.2000 crore.
The various reports state that these talks are at an early stage and may or may not materialise. Coffee Day is also said to be talking to other parties for the same and will sell to the best price.
For Tata Consumer, which already has a tie-up with Starbucks and sells Tata Tetley, this vending machine deal could be a win-win.