Why is Tata Chemicals' share price rising today? Soda ash deal, Tata Sons listing buzz explained

Shares of Tata Chemicals clocked their best single-day gain since October 13, 2021, after the company informed exchanges that its arm, Tata Chemicals North America (TCNA), acquired soda ash customer contracts of Searles Valley Minerals Inc.

Shares of Tata Chemicals rose by their daily maximum limit of 20% to ₹735 after the company said that its arm TCNA was declared the successful bidder in the Chapter 11 bankruptcy proceedings of Searles Valley Minerals Inc. (SVM), USA, for the acquisition of North American soda ash customer contracts representing over 5,00,000 metric tonnes to be serviced over a period of two years.

“We wish to inform that TCNA has successfully completed the acquisition of customer contracts on September 11, 2026, following the satisfaction of all conditions precedent and other terms set out in the Assignment and Assumption Agreement,” Tata Chemicals said in an exchange filing.

Tata Sons listing

In a separate development, Tata Chemicals stock also got a boost after the Reserve Bank of India (RBI) rejected Tata Sons’ application to surrender its core investment company registration, killing the Tata Group holding company’s attempt to avoid a mandatory stock-market listing and setting the stage for it to become a publicly traded company.

Seven Tata Group companies own an 11.6% stake in Tata Sons, with Tata Chemicals owning a 2.53% stake in the company worth ₹25,300 crore, which is significantly higher than its market capitalisation of ₹18,722 crore.

Tata Steel, Tata Motors PV, Indian Hotels, Tata Consumer Products, Tata Investment Corporation and Tata Power also own stakes in Tata Sons.

Tata Chemicals Q1 FY27 earnings

In July, Tata Chemicals reported an 81% decline in consolidated net profit to ₹60 crore for the quarter ended June on higher expenses.

Its net profit stood at ₹316 crore in the year-ago period.

The company’s total income rose to ₹4,311 crore in the first quarter of this fiscal from ₹3,815 crore in the corresponding period of the preceding year, according to a regulatory filing.

As of 10:52 am, Tata Chemicals shares were locked in the 20% upper circuit at ₹735 with pending buy orders of 18,51,315 shares on the National Stock Exchange, while there were no sellers on the exchange.