Tata Chemicals up on getting board’s nod for increasing stake in Rallis India

Tata Chemicals is trading in the green on the BSE after the company’s board approved a proposal to increase its stake in Rallis India by acquiring up to 35.80% stake from the promoter group.

The scrip is currently trading at Rs 270.60 per share, up 10.20 points or 3.92% on the BSE.

The stock opened at Rs 264.10 as compared to its previous close of Rs 260.40. By now, the counter touched a high and a low of Rs 271.90 and Rs 263.10, respectively.

So far, 98,312 shares of the company were trading on the BSE.

The stock touched its 52-week high of Rs 339 on August 13, 2008 and a 52-week low of Rs 99.70 on March 9, 2009.

The stock has gained 3.72% since the past one week and 37.85% since the last one month.

The board of directors of Tata Chemicals, which met on August 12, 2009, has approved a proposal to increase its stake in Rallis India by acquiring up to 35.80% stake in the latter, from the promoter group. The information is part of the company’s filing with the BSE.

The ‘promoter group’ of Rallis India includes Tata Tea, Tata Sons, Tata Investment Corporation & Ewart Investments. Tata Chemicals will pick up the shares at a price not exceeding Rs 850 per share, through an inter-se transfer of shares.

Tata Chemicals, which currently holds 9.40% stake in Rallis India, will see its holding rising to 45.20% after the deal.

Tata Chemicals is engaged in the crop nutrition segment and is the world’s second largest soda ash manufacturer while Rallis has a presence in the crop protection business. The move will result in synergy of operations of the two companies, both of which have a presence in the agro sector.