The shares of the company, presently quoted at Rs 36, are trading significantly below the average scrip price over the last two years.
However, Ratan Tata, chairman of Tata Chemicals, categorically ruled out the possibility and said the company would rather spend the amount required to buy back shares in enhancing the business interests.
Tata said that if the company were to go for a buy-back, Tata Chemicals would have to spend around Rs 400 crore, and there would still be no guarantee that the share price would rise. "To be more judicious, it would be better if the company were to invest the amount in developing existing businesses. We need to look at new projects," Tata said.
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Tata said the company was hoping to make a strong comeback from its current position. He attributed the relatively poor performance over the last year to two factors - one, Chinese dumping of soda ash in the country, and two, the reduction in subsidies by the government.
"We are hoping to refocus both as a group and a company. Even within companies, we'll be making businesses much more focused," he said.