Tata Chemicals declines after RBI curbs FII stock purchase

Tata Chemicals fell 1.66% to Rs 262.95 at 13:27 IST on BSE after the central bank restricted foreign institutional investors from purchasing shares of the company as the foreign shareholding in the company has reached the trigger limit.

Meanwhile, the BSE Sensex was down 21.87 points, or 0.11%, to 20,693.71.

On BSE, so far 20,000 shares were traded in the counter, compared with an average volume of 46,352 shares in the past one quarter.

The stock hit a high of Rs 271.30 and a low of Rs 262.50 so far during the day. The stock hit a 52-week high of Rs 381.50 on 9 January 2013. The stock hit a 52-week low of Rs 234.50 on 4 September 2013.

The stock had underperformed the market over the past one month till 13 December 2013, sliding 1.82% compared with the Sensex's 2.58% rise. The scrip had, however, outperformed the market in past one quarter, rising 8.17% as against Sensex's 4.98% rise.

The mid-cap company has an equity capital of Rs 254.76 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) notified on Friday, 13 December 2013, that the foreign share holdings by foreign institutional investors (FIIs) in Tata Chemicals has reached the trigger limit of 22%. Hence, further purchases of equity shares of the company would be allowed only after obtaining prior approval of RBI, the central bank said in a statement.

Total foreign holding in Tata Chemicals was 21.32% as at 30 September 2013, of which 21.17% was held by FIIs.

On a consolidated basis, Tata Chemicals' net profit fell 47.6% to Rs 134.44 crore on 3.4% increase in net sales to Rs 4281.90 crore in Q2 September 2013 over Q2 September 2012.

Tata Chemicals is the pioneer and market leader in India's branded Iodised salt segment. The company is also the world's second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. It is also a leading manufacturer of urea and phosphatic fertilisers and, through its subsidiary, Rallis, has a strong position in the crop protection business.

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