Shares of Rallis India Ltd. gained the most in over six months on Tuesday after Tata Chemicals Ltd. increased its stake in the company to 55.04%.
Tata Chemicals bought 9.7 million shares, or 4.99% equity, of the agrochemicals firm at Rs 215.05 per share through a block deal.
The acquisition increased Tata Chemicals' shareholding in the subsidiary to 55.04%, according to an exchange filing. The seller was not known immediately.
Shares of Rallis India rose 3.16% to Rs 221.85 apiece as of 10.51 a.m., compared to a 0.33% advance in the NSE Nifty 50. The shares jumped as much as 6.98%, the highest single-day jump since Jan. 13. The stock has fallen nearly 9.1% year-to-date.
The total traded volume so far today stands at 16.7 times its 30-day average. The relative strength index was at 78, implying that the stock may be overbought.
Out of the 18 analysts tracking the company, three maintain a 'buy' rating, seven recommend a 'hold' and eight suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 8.2%.
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