Shares of Tata Chemicals surged 7 percent in Thursday’s trade to hit an intraday high of Rs 464.85 on the National Stock Exchange (NSE) surging 13 percent in the past two days.
Tata Sons bought 18,07,245 shares of Tata Chemicals NSE at Rs 420.92 per share, bulk deal data showed. This took the total deal value to Rs 76.07 crore. The promoter group entity held a 29.39 percent stake in the company at the end of the September quarter.
Following the development, the stock rose 7.2 percent to hit a high of Rs 458 on BSE. At this price, the scrip was trading at 1.6 times its 12-month price to earnings ratio and 0.88 times its price-to-book ratio. The scrip had settled 5.48 percent higher at Rs 427.35 apiece.
In the past month, the stock has outperformed the market by surging 42 percent, as compared to a 13 percent rise in the Nifty50 index.
The company deals in two verticals – Basic chemistry and specialty chemistry. The company’s Basic chemistry product range provides key ingredients for glass, detergents, pharma, biscuit manufacturing, bakeries, and other industries.
The company has the largest saltworks in Asia and is the third-largest soda ash manufacturer and the sixth-largest sodium bicarbonate manufacturer in the world. The company has a strong position in the crop protection business through its subsidiary company Rallis India.
At 13:40, Tata Chemicals was trading 7.27 percent higher at Rs 458.55 on the NSE. A combined around 6 million equity shares had changed hands on the counter on the NSE and BSE.