Tata Chemicals hits fresh lifetime high; stock zooms 100% in 3 months

Shares of Tata Chemicals zoomed 10 per cent and hit a new high of Rs 738 on the National Stock Exchange (NSE) in intra-day trade on Thursday on the back of heavy volumes.

Till 11:43 pm, around 13.66 million equity shares, representing 5.4 per cent of the company's total equity, had changed hands on the NSE, the exchange data shows. The name of the buyers and sellers were not ascertained immediately.

In the past three months, the stock of the Tata Group commodity chemicals manufacturer has rallied 100 per cent, as compared to 5.5 per cent rise in the Nifty50 index.

Meanwhile, Tata Sons, the promoter group company of Tata Chemicals, has raised its stake in the company through open market purchases.

On December 4, 2020, Tata Sons purchased 2.57 million equity shares, representing 1 per cent equity of Tata Chemicals, at a price of Rs 471.88 per share on the NSE via bulk deal, the exchange data shows. Earlier, on December 2, 2020, Tata Sons had purchased 1.8 million equity shares, representing 0.71 per cent equity of Tata Chemicals, at a price of Rs 420.92 per share on the NSE via bulk deal, data shows.

As per December 2020, shareholding pattern, Tata Sons increased its holding in Tata Chemicals to 31.90 per cent from 29.39 per cent in September quarter and 28.51 per cent at the end of June quarter.

During the October-December quarter (Q3FY21), Tata Chemicals said it witnessed sequential improvement in demand, even as the company navigates the margin pressures through agile execution of cost efficiencies. In the coming quarters, the management expects a greater recovery in production and demand, given the commencement of the vaccination drive in India.

The company’s basic chemistry product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products. Tata Chemicals currently is the world’s third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. The company has a strong position in the crop protection business through its subsidiary company Rallis India.