Tata Chemicals Ltd, a Tata group entity, plans to buy out the other promoters in group company Rallis India. Tata Chemicals has a 9.40 per cent stake in Rallis India as on June 30, 2009.
In a communication to the stock exchanges after close of market hours on Wednesday, Tata Chemicals said that it would buy the shares from other qualifying promoter group Tata companies — Tata Tea Ltd, Tata Sons Ltd, Tata Investment Corporation Ltd and Ewart Investments Ltd — through an inter se transfer of shares.
Board approval
The communication said that Tata Chemicals had a strong presence in crop nutrition business and Rallis was among the leaders in crop protection business.
Tata Chemicals’ board approved a proposal today to purchase up to 35.80 per cent shares from other promoter group companies, at a price not exceeding Rs 850 a share.
As on June 30, 2009, the promoter group had a 45.21 per cent stake in Rallis India — Tata Tea 24.52 per cent, Tata Chemicals 9.40 per cent, Ewart Investments Ltd 1.35 per cent, Tata Investment Corporation 2.42 per cent and Tata Sons 7.52 per cent.
Rallis India’s Rs 10 shares closed up 7 per cent on the NSE on Wednesday at Rs 737.30. A total of 62,707 shares were traded on the exchange. The 52-week high was Rs 810 and 52-week low Rs 275.30.
Tata Chemicals’ shares closed 1.4 per cent up on the NSE at Rs 260.15.
Source: The Hindu Businessline