Tata Chemicals shareholders approves sale of Haldia phosphatic fertiliser operations

Shareholders of the company have passed a resolution approving sale of the company's phosphatic fertiliser and trading business, and all related assets at Haldia in West Bengal.

Jan 11, 2018 12:01 IST India Infoline News Service

Tata Chemicals (TCL) has received approval from majority shareholders for sale of its Haldia fertilizer unit in West Bengal to Netherlands-based Indorama Holdings BV for Rs375cr.

The stock is currently trading at Rs 775, up by Rs12.05 or 1.58% from its previous closing of Rs762.95 on the BSE. The scrip opened at Rs763 and has touched a high and low of Rs781.2 and Rs763 respectively.

TCL is currently trading at Rs774.5, up by Rs11.55 or 1.51% from its previous closing of Rs762.95 on the BSE. The scrip opened at Rs763 and has touched a high and low of Rs781.2 and Rs763 respectively.

Realizations for soda ash business could see an upswing due to the reduction of capacity in China, while the opening of capacities in Turkey may put temporary pressure. The market is expected to stabilize thereafter, leading to firmness in soda ash realizations over the longer term.

TCL would become debt free at net level due to Rs45bn from the sale of investment in Tata Global Beverages and Rs30bn from fertilizer divestment over next 2-3 years. Over the longer term, the management has identified growth areas such as specialty chemicals, consumer products as well as inorganic chemicals. Over FY17-19E, we expect EBITDA and PAT margins to expand by 240bps and 150bps respectively.

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