Tata Chemicals surges 7%, hits new high as Tata Sons buys additional stake

On Friday, December 4, Tata Sons purchased 2.57 million equity shares, representing 1 per cent equity of Tata Chemicals.

Continuing its upward movement, Tata Chemicals stock rallied 7 per cent to hit a new high of Rs 527 on the National Stock Exchange (NSE) on Monday. With today's rally, the stock has surged 16 per cent in the past two days after the promoter company, Tata Sons, bought an additional 2.57 million shares of the company for Rs 121 crore via open market.

On Friday, December 4, 2020, Tata Sons purchased 2.57 million equity shares, representing 1 per cent equity of Tata Chemicals, at a price of Rs 471.88 per share on the NSE via bulk deal, the exchange data shows.

Earlier, on Wednesday, December 2, 2020, Tata Sons had purchased 1.8 million equity shares, representing 0.71 per cent equity of Tata Chemicals, at a price of Rs 420.92 per share on the NSE via bulk deal, data shows. The names of the sellers were not ascertained immediately.

In the past one month, the stock has outperformed the market by surging 66 per cent, as compared to an eight per cent rise in the Nifty50 index.

Currently, the Tata Group commodity chemicals company is the world’s third-largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa, and North America. The company has a strong position in the crop protection business through its subsidiary company Rallis India.

At 09:46 am, Tata Chemicals was trading 6 per cent higher at Rs 522 on the NSE, against a 0.41 per cent gain in the Nifty50 index. The counter has seen huge trading volumes with a combined around 12 million equity shares changing hands on the counter on the NSE and BSE.