Tata Tea Ltd. will buy 11 percent of an Indian mineral water maker, a television channel said on Thursday, almost a week after the company agreed to sell a 30 percent stake in a U.S. vitamin water maker for $1.2 billion.

CNBC TV18 said the founders of Mount Everest Mineral Water Ltd., which makes Himalayan brand of bottled water, would make a preferential allotment to Tata Tea.

Tata Tea will also make an open offer for more shares in Mount Everest to take its holding to 42 percent, the TV channel said, adding Tata Tea`s board was expected to approve the deal at a board meeting on Friday.

A spokeswoman for Tata Tea said: "We do not wish to comment on market speculation."

The board is meeting on Friday to discuss financial results, she said.

Tata Tea said last week it had agreed to sell its holding in U.S. vitamin water maker Glaceau to Coca-Cola Co., for nearly twice the amount it had paid in August.

At 12:01 p.m., Tata tea was up 4.96 percent NSE, & Mount Everest also closed 5 percent in positive on BSE at 127.65 rupees.