InvestorQ : Why has Tata Sons been buying aggressively into Tata Chemicals?
Dawn Cherian made post

Why has Tata Sons been buying aggressively into Tata Chemicals?

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Mitali Bhutta answered.
1 month ago
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The holding company of the Tata Group, Tata Sons, purchased an additional 25.71 lakh shares of Tata Chemicals worth over Rs.121 crore from the open market. Tata Chemicals has been on a sharp uptrend in the last few days rallying over 20% in less than 3 days. According to bulk deal data, Tata Sons bought the shares at Rs.471.88.

Tata Sons held 29.39% in Tata Chemicals as per last shareholding reports but the last two rounds of purchases would have taken the stake higher. Tata Sons has been in the midst of consolidating its holdings in the group companies ahead of its showdown with the Mistry group later this month over the stake sale in Tata Sons.

It may be recollected that Tata Chemicals had reported a 64% fall in net profit at Rs.132 crore for the Sep-20 quarter. During the same period, the total income had also fallen 6.1% to Rs.2678 crore. Tata Sons had hived off its sale business to Tata Consumer and now Tata Chemicals only deals in the base chemical commodity businesses.

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