Tata Chemicals has bought out the stakes of four other Tata group companies in Rallis India, and in the process increased its holding to 45.08 per cent.
It paid a total of Rs 363.44 crore for acquiring the 35.68 per cent stake held in Rallis India, also another Tata group company, from Tata Tea, Tata Sons, Tata Investment Corporation and Ewart Investments at Rs 850 a share.
Tata Tea got about Rs 249.79 crore for selling its holding in Rallis, while Tata Sons got Rs 76.56 crore, Tata Investment Corporation Rs 23.75 crore and Ewart Investments Rs 13.34 crore.
Last week, Tata Chemicals informed stock exchanges that it planned to acquire the stake held by the four group companies in Rallis India at a price not exceeding Rs 850 a share. It informed the exchanges on Wednesday that it had completed the transaction. Tata Chemicals said that it was an off-market deal among promoter companies and that it would be exempted from having to make an open offer to other shareholders of Rallis India.
On the NSE on Wednesday, the shares of Rallis India were up nearly two per cent to close at Rs 743.05, while those of Tata Chemicals were up marginally at Rs 244.10 and those of Tata Chemicals eased to Rs 890.45.
In a press release last week while announcing its intention to increase its stake in Rallis India, Tata Chemicals said that it had a strong presence in the crop nutrition business while Rallis India was among the leaders in the crop protection business.
Source: The Hindu Businessline