Shares of Tata Chemicals Ltd rose sharply on Wednesday to scale their one-year high level. The stock surged 13.26 per cent to hit a 52-week high of Rs 1,202.65. It eventually closed with 10.99 per cent gains at Rs 1,178.55. The scrip saw heavy trading volume today as around 18.01 lakh shares were seen changing hands on BSE. The figure was way more than the two-week average volume of 1.38 lakh shares. Turnover on the counter came at Rs 204.45 crore, commanding a market capitalisation (m-cap) of Rs 30,024.30 crore.
Today's upward move in the share price could be largely attributed to another possible listing expectation of a Tata Group firm. "There's some expectation in the market about Tata Sons getting listed. If that happens, then it would be a positive development for the listed Tata Group entities, including Tata Chemicals. But, there need not be any euphoria as holding company discount exists even for other firms from the group. There is still a considerable discount holding this stock. Don't rush to the market and buy at whatever levels. Those holding Tata Chemicals shares can continue with their positions, hoping for the eventual listing of Tata Sons," G Chokkalingam, founder and MD of Equinomics Research, told Business Today TV.
In November last year, Tata Technologies made a bumper debut at Dalal Street as the stock was listed at Rs 1,200, a premium of 140 per cent over its issue price Rs 500. The scrip was last seen trading 0.69 per cent lower at Rs 1,068. Tata Tech was the first Tata group company to list in almost two decades.
Tata Sons is the holding company of the Tata Group, majorly owned by Dorabji Tata Trust (28 per cent) and Ratan Tata Trust (24 per cent). Both Tata Motors and Tata Chemicals own around 3 per cent stake in the holding company. Tata Power and Indian Hotels own 2 per cent and 1 per cent, respectively.
In a separate development, Fitch Ratings has revised its outlook on Tata Chemicals' long-term foreign-currency Issuer default rating (IDR) to 'Stable' from 'Positive' and affirmed the rating at 'BB+'.
The Tata Group-owned company's consolidated net profit fell 60 per cent from the previous year to Rs 158 crore in the three months ended December 31.
As of December 2023, promoters held a 37.98 per cent stake in Tata Chemicals. Shares of Tata Investment Corporation also saw sharp gains today as the stock settled 5 per cent higher at Rs 9,280.40.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)