Tata Chemicals rose 1.57% to Rs 646.30 at 9:49 IST on BSE after the company said it is in advanced stages of discussions for potential sale of its phosphatic fertiliser business.
The announcement was made after market hours yesterday, 13 September 2017.Meanwhile, the S&P BSE Sensex was up 130.93 points or 0.41% at 32,317.34.
On the BSE, 28,000 shares were traded on the counter so far as against the average daily volumes of 44,929 shares in the past one quarter. The stock had hit a high of Rs 653.45 and a low of Rs 646.15 so far during the day. The stock had hit a record high of Rs 665.10 on 4 May 2017 and a 52-week low of Rs 445.50 on 21 November 2016.
The large-cap company has equity capital of Rs 254.76 crore. Face value per share is Rs 10.
Tata Chemicals said that it is in advanced stages of discussions and negotiations with Indorama Holdings BV, Netherlands (subsidiary of Indorama Corporation, Singapore), for the potential sale of its Phosphatic Fertiliser Business located at Haldia and the trading business comprising of bulk and non-bulk fertilisers. The parties have a mutually agreed exclusivity agreement in this regard which expires on 31 October 2017.
The potential transaction would be subject to due diligence, agreement on the definitive documents and approvals from the Board, Shareholders and Regulatory Authorities as may be required, and there is no certainty of the transaction being completed. The transaction if materialized would involve transfer of Haldia Plant, Trading Business along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts. The company is expected to receive consideration in the range of Rs 400 crore to Rs 500 crore.
On a consolidated basis, Tata Chemicals' net profit fell 13.5% to Rs 241.77 crore on 20% decline in net sales to Rs 2572.37 crore in Q1 June 2017 over Q1 June 2016.
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Tata Chemicals is a global company with interests in businesses that focus on LIFE-living, industrial and farm essentials.
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