Dhunseri Group firms surge 20% each as TGBL plans to buy its tea business

NEW DELHI: Shares of Dhunseri Group companies surged up to 20 per cent on Wednesday after Tata Global Beverages (TGBL) announced its decision to acquire the branded tea business of Dhunseri Tea & Industries for Rs 101 crore subject to due diligence and necessary approvals.

Shares of Dhunseri Ventures, Dhunseri Investments and Dhunseri Tea & Industries surged 20 per cent each, closing at Rs 110.10, Rs 314.20 and Rs 274.55, respectively. This was against 1.27 per cent rise in the BSE Sensex.

The branded tea business of Dhunseri Tea and Industries Limited is presently carried out under the brands “Lalghoda” and “Kalaghoda” which are among the leading local brands in Rajasthan, a market which is dominated by local players.


The move is in line with TGBL’s ambition to grow its branded tea business in India, the TGBL said in a statement.

The company on Tuesday reported a 61 per cent fall in Q4 net profit. Earnings growth was affected by one-off losses from associates, Morgan Stanley said in a note. Morgan Stanley maintained 'underweight' rating on the stock with a target price of Rs 165.

Shares of Tata Global Beverages closed 0.31 per cent down at Rs 208.90.