Shares of Rallis India – a Tata Group company – continued to surge on Tuesday after its parent Tata Chemicals raised stakes in the company.
What Happened: Tata Chemicals on Tuesday informed the exchanges that it has acquired 97 lakh equity shares of Rallis India at ₹ 215.05. The shares amount to around 4.99% of the company’s total equity shares.
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The acquisition of the shares was executed through a block deal on Tuesday morning. With this acquisition, Tata Chemicals now owns a 55.04% stake in the company. The total cost for the deal was around ₹208.60 crore.
The acquisition comes just days after the agri chem company reported its Q1 numbers. The company's revenue from operations went down 9% year-over-year to ₹782 crore. Profits for the April-June period stood at ₹63 crore, down 6% from the ₹67 crore profits it booked during the same period last year.
Price Action: Rallis India’s share price was up 2.28% to trade at ₹219.85 shortly after the markets opened on Tuesday.
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