Hike in FII investment cap perks up Tata Tea

DALAL STREET SPIKES

Tata Tea Ltd was up 1.69 per cent to Rs 862.75 as compared with its previous close of Rs 848.40. Around 1.96 lakh shares were traded on the BSE on Wednesday.

The scrip price rose after RBI raised the FII investment ceiling in the scrip to 35 per cent. Marketmen are expecting that the company would be making a $1 billion acquisition in the US.

The company's board has also approved the merger of Tata Tetley with itself, which is a 100 per cent subsidiary of the company.

Tata Tea's decision to focus on the branded tea business has further boosted the scrip price.