Tata Chemicals rose 0.88% to Rs 730 at 09:25 IST on BSE after the company signed a business transfer agreement with Allied Silica to acquire their business of precipitated silica, on a slump sale basis.
The announcement was made on Sunday, 8 April 2018.Meanwhile, the S&P BSE Sensex was up 13.02 points or 0.04% at 33,639.99.
On the BSE, 4,576 shares were traded on the counter so far as against the average daily volumes of 45,000 shares in the past two weeks. The stock had hit a high of Rs 730.70 and a low of Rs 728.45 so far during the day. The stock had hit a record high of Rs 781.20 on 11 January 2018 and a 52-week low of Rs 558 on 11 August 2017.
The large-cap company has equity capital of Rs 254.76 crore. Face value per share is Rs 10.
Tata Chemicals said that the company has on 7 April 2018, signed a business transfer agreement with Allied Silica to acquire their business of precipitated silica, on a slump sale basis. The transaction includes the acquisition of an existing manufacturing site for manufacturing precipitated silica in Tamil Nadu, which has been recently commissioned. The acquisition involves cash consideration of upto Rs 123 crore to be paid subject to fulfillment of certain agreed conditions and milestones.
This acquisition is a part of the Rs 295 crore investment approved by the board of Tata Chemicals in February 2017, for entry into the Highly Dispersible Silica (HDS) business, which was informed to the Stock Exchanges on 9 February 2017. The acquisition is expected to be closed within 3 months.
Precipitated silica is a versatile product with applications in many industries including rubber, oral care, coatings, agrochemicals, etc. The acquisition also offers the possibility to make value added silica in the future for applications that demand high performance.
On a consolidated basis, Tata Chemicals' net profit jumped 161.18% to Rs 831.58 crore on 5.82% rise in net sales to Rs 2573.91 crore in Q3 December 2017 over Q3 December 2016.
Tata Chemicals is a global company with interests in businesses that focus on LIFE-living, industrial and farm essentials.
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