Shares of Tata Chemicals jumped more than 3% on Wednesday, April 10, after the company witnessed a sharp uptick in soda ash prices. Soda ash price, a key product for Tata Chemicals, is back near 2,000, the highest level in 2 months with a gain of 4% on April 10.
Reacting to the development, the Tata Group stock rallied as much as 3.2% to an intra-day high of ₹1,175 apiece on the BSE. Moreover, the stock has gained close to 9% so far this month.
The stock has recovered most of the losses since Tata Son IPO plan was postponed.
Shares of Tata Chemicals plummeted over 10% on March 11 after reports suggested that the IPO of Tata Group holding company Tata Sons, which was anticipated to enhance the value of Tata Chemicals, was becoming less likely to happen in the near future.
Before this, Tata Chemicals shares surged by 36% for the week March 8 amid growing speculation about the potential IPO of the parent company of several Tata group firms. The reports indicated that the conglomerate is exploring different strategies to comply with the Reserve Bank of India’s (RBI) regulations.
The gain in today’s stock price has pushed the company’s market capitalisation to around ₹29,800 crore.
Tata Sons is designated as a “core investment company (CIC)” by the RBI and falls under the category of an “upper layer” NBFC. As per regulations, this classification mandates adherence to a rigorous regulatory framework and necessitates the company’s listing on the public market within three years of notification.
Shares of Tata Chemicals were trading 2.36% higher at ₹1,164.65 apiece on the BSE at 10.45 am.
