Tata Consumer Products rose 2.7 per cent in a weak market to Rs 645.5 on the BSE on Wednesday on report that the Tata Group is in the final stages of acquiring a majority stake of 68 per cent in Supermarket Grocery Supplies, which runs and operates online grocery brand BigBasket. The deal, which is expected to close in the next four to five weeks, will give exit to investors Alibaba, Abraaj Group and IFC. The top management, including co-founder and CEO Hari Menon, will continue to stay on board, the report added. The deal worth Rs 9,300-9,500 crore biggest in the online grocery space so far values BigBasket at Rs 13,500 crore (around $1.85 billion). This comes about 20 months after the Hari Menon-led Bengaluru company had entered the unicorn club (companies with valuation of at least $1 billion), it said.
Top headlines: Tatas to buy 68% in BigBasket, India Inc profit at new high
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BigBasket, DailyNinja served Rs 231 crore notice over breach of contract: Report
In October 2017, Town Essential had formed a contract with DailyNinja for exclusive back-end supply and procurement. February 08, 2021 / 12:09 PM IST
Bigbasket (2/10) – Bigbasket scored its points in the fair management area, where it offered communication channels for workers such as helpline numbers, management-created WhatsApp groups and one-on-one communication channels with managers or team leads. (Image: BigBasket)
BigBasket and Daily Ninja have been served a Rs 231 crore notice by Town Essentials since they allegedly did not honour a contract.
Town Essentials has claimed losses, demanding Rs 6 crore in relation to termination of the contract, Rs 200 crore for wrongful loss of growth opportunity , and Rs 25 crore for harassment and cheating , Mint reported citing the notice.
Supermarket Grocery Supplies, which operates online grocery store BigBasket, reported a consolidated net loss of Rs 611 crore in FY20, a 6.7 per cent rise as compared to the previous financial year at Rs 572 crore. According to financial data accessed by business intelligence platform Tofler, the Bengaluru-headquartered company posted a 36 per cent jump in revenue at Rs 3,822 crore in FY20 over the previous financial year. BigBasket, which is soon to be acquired by the Tata Group, saw its total expenses widen 31 per cent from Rs 3,376 crore in FY19 to Rs 4,433 crore in FY20. The Tata Group is in advanced talks to buy a majority stake in BigBasket in a deal that is likely to value the online grocer at $1.6 billion.
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