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Tata Chemicals Shares Rise Following RBI’s Response to IPO Exemption Request

Updated on: Dec 10, 2024, 4:43 PM IST
Tata Chemicals shares rose 2.5% after RBI's response to Tata Sons' IPO exemption request. The company's market cap now exceeds ₹28,600 crore, with potential for value unlocking.
Tata Chemicals Shares Rise Following RBI’s Response to IPO Exemption Request
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Tata Chemicals’ share price rose by over 2% on December 10, 2024, after the Reserve Bank of India (RBI) responded to Tata Sons’ application seeking exemption from an Initial Public Offering (IPO).

Stock Price Movement

Tata Chemicals share price is currently trading at ₹1,119.55, up by ₹13.50 or 1.22% as of 12:37 PM on December 10, 2024. The stock opened at ₹1,125.35 and reached a high of ₹1,134.90 and a low of ₹1,109.90 during the day. The stock’s 52-week high is ₹1,349.00, while the 52-week low is ₹933.00. 

RBI’s Response to Tata Sons’ IPO Exemption Request

In response to a Right to Information (RTI) application, RBI clarified that Tata Sons’ request for exemption from the IPO requirement is still being examined. The RBI’s reply, dated November 14, confirmed that Tata Sons’ application for surrendering its Core Investment Company (CIC) registration is under review.

IPO Listing Requirement for Tata Sons

As per RBI regulations, entities classified as “upper-layer NBFC” are required to be listed on the stock exchanges within 3 years of being designated as such. This means that Tata Sons must go public by September 2025.

Tata Chemicals as a Potential Beneficiary

Tata Chemicals emerged as a key stock to watch, with investors speculating that the company could benefit from a value-unlocking exercise if Tata Sons proceeds with an IPO.

Earlier this year, Spark Capital estimated that Tata Chemicals’ 3% stake in Tata Sons was valued at ₹19,850 crore, or about 80% of Tata Chemicals’ market value at the time. However, the valuation dynamics could change with Tata Chemicals’ market capitalisation now exceeding ₹28,600 crore in December 2024.

About Tata Chemicals Ltd

Tata Chemicals Ltd, established in 1939, is a key player in manufacturing and exporting basic chemistry and specialty products. As a part of the Tata Group, the company holds a strong position in the global soda ash market, with operations in India, North America, Europe, and Africa. Its product range is divided into basic chemistry and speciality products. Tata Chemicals is the third-largest soda ash producer in the world, with over two-thirds of its production coming from natural soda ash, which helps reduce costs. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 10, 2024, 1:26 PM IST

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