Shares of Tata Group company Rallis India and parent Tata Chemicals were in focus in trade Wednesday after ace investor Rekha Jhunjhunwala sold a 5.5 percent stake in the Tata Group firm through block deals, while promoter Tata Chemicals has lapped up those shares.

Share Market Live

NSE

The ace investor sold about 1.06 crore shares in Rallis India through a bulk deal on the NSE. Jhunjhunwala offloaded 97 lakh shares in the company at an average price of Rs 215.05 apiece, and 9,96,091 shares at an average price of Rs 220.35. All in all, the shares were sold at an average price of Rs 215.54 apiece, as per data available with the exchanges.

Meanwhile, promoter Tata Chemicals bought 97 lakh shares or 4.99 percent of the paid-up share capital of Rallis India at an average price of Rs 215.05 per share.

About 5.5 percent stake or 1.06 crore shares were held in the name of Rekha Rakesh Jhunjhunwala, and 2.25 percent stake or 43.75 lakh shares were in the name of Rekha Jhunjhunwala, as of the June 2023 quarter shareholding.

As per the latest shareholding data, promoters own 50.09 percent in Rallis India, while the rest is with public shareholders. The promoter stake is almost entirely with Tata Chemicals at 50.06 percent, while Ewart Investments has a meagre 0.04 percent.

Meanwhile, mutual funds have 12.15 percent, and foreign portfolio investors own as much as 8 percent stake in the company, among the public shareholders.

Recently, Rallis India, which is a subsidiary of Tata Chemicals and a part of the $128-billion Tata Group, reported a marginal fall in net profit at Rs 63 crore for June quarter on lower income. The company's net profit stood at Rs 67 crore in the year-ago period.

Total income fell to Rs 765 crore in April-June of this financial year from Rs 867 crore in the corresponding period of the previous year.

Sanjiv Lal, Managing Director & CEO, Rallis India, said, "Crop care business has been affected by high market inventories, steep price drops and delayed onset of monsoon. Margins were largely maintained through better product mix and dynamic pricing actions. We remain cautious about the international market demand recovery during the second half of the year once the inventory situation gradually eases out. Sentiments for the domestic market are positive with the recent uptick in monsoons."

Notwithstanding the near-term challenges, the CEO said the company's long-term strategy remains unchanged, focused on increasing manufacturing capacities, product portfolio expansion and widening market reach.

Shares of Rallis India were trading half-a-percent higher at Rs 222 apiece on Wednesday, whereas the stock of Tata Chemicals opened almost flat at Rs 1,000.55 per share.

First Published:Jul 19, 2023 9:20 AM IST