Tata Chemicals surges 7% as Tata Sons hikes stake

NEW DELHI: Shares of Tata Chemicals surged 7 per cent in Thursday's trade after promoters Tata Sons hiked stake in the company.

Tata Sons bought 18,07,245 shares of Tata Chemicals NSE at Rs 420.92 per share, bulk deal data showed. This took the total deal value to Rs 76.07 crore.

The promoter group entity held 29.39 per cent stake in the company at the end of September quarter.

Following the development, the stock rose 7.2 per cent to hit a high of Rs 458 on BSE. At this price, the scrip was trading at 1.6 times its 12-month price to earnings ratio and 0.88 times its price-to-book ratio.

The scrip had settled 5.48 per cent higher at Rs 427.35 apiece.

The company deals in two verticals - Basic chemistry and specialty chemistry. The company’s Basic chemistry product range provides key ingredients for glass, detergents, pharma, biscuit manufacturing, bakeries and other industries.

The company has the largest saltworks in Asia, and is the third largest soda ash manufacturer and the sixth largest sodium bicarbonate manufacturer in the world.

The company has a strong position in the crop protection business through its subsidiary company Rallis India.