Tata Consumer Products (TCPL) Shares fell 2% to Rs 693.05 on the BSE in intraday trade on Monday after the Tata group of companies halted talks with Bisleri on a potential takeover. It said no definitive agreement or binding commitments had been signed.

TCPL began negotiating with the Chauhan family two years ago but decided last week to call off negotiations. Bisleri International chairman Ramesh Chauhan told Business Standard in November last year that he was discussing with TCPL to sell a majority stake in the company for Rs 6,000-7,000 crore, adding that he expected the deal to be completed within 7-8 months.

After hours, Friday, March 17, 2023, Tata Consumer announced that the company has clarified that it continues to evaluate various strategic opportunities for the growth and expansion of its business. Accordingly, the company’s management remains in partnership with Bisleri International Private Limited (“Bisleri”), among other parties.

In this regard, the company wishes to update you that it has ceased negotiations with Bisleri regarding a potential transaction and confirms that it has not yet reached any definitive agreement or binding commitment. The announcement was made voluntarily to prevent speculation on the matter, the company said in an exchange filing.

TCPL has underperformed the market over the past three months, falling 14%, while the S&P BSE Sensex has lost nearly 7%. Over the past year, it has fallen 10%, compared with a 1% decline in the benchmark index. The stock hit a 52-week low of Rs 685 on March 16, 2023.

TCPL is one of the major Fast Moving Consumer Goods (FMCG) companies dealing in tea, coffee and other beverages in India, the UK, the US, Canada and other regions. It also has salt, beans, spices, and other foods in India. Its subsidiary, NourishCo, is in the business of packaging water and other beverages. The company is a joint venture with Starbucks, which has 311 stores in India.