Tata Chemicals Shares Gain The Most In Eight Months On Plans To Build EV Battery Plant
The company has signed a MoU with Gujarat government to set up a lithium-ion cell manufacturing plant for Rs 13,000 crore.
Shares of Tata Chemicals Ltd. rose the most in over eight months after it agreed to set up an electric vehicle battery plant in Gujarat.
The company has signed a memorandum of understanding with the Government of Gujarat to set up a 20 gigawatt-capacity lithium-ion cell manufacturing factory with an investment of Rs 13,000 crore.
The deal to set up the cell manufacturing unit stems from the state's resolve to adopt 100% electric vehicles and reduce carbon emissions by 50% by 2030.
Tata Chemicals (Soda Ash) Partners will be converted from a partnership to a limited liability company, resulting in a change of name to Tata Chemicals (Soda Ash) Partners LLC, as per an exchange filing in which it announced the reorganisation of U.S. operations to rationalise the number of intermediate entities.
Tata Chemicals will also merge two intermediate holding entities into the above-mentioned company. Furthermore, it will merge Valley Holdings Inc. into Tata Chemicals North America Inc.
Crisil has reaffirmed 'A1+' ratings on the company’s commercial paper worth Rs 100 crore, according to an exchange filing.
Shares of Tata Chemicals Ltd. rose 3.98% to Rs 1,008.4 apiece as of 10:17 a.m. on Monday, compared to 0.46% advance in the benchmark Nifty 50. The stock rose as much as 4.96% intraday, the most in over eight months since Oct. 4, 2022.
The total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 63.6.
Out of the nine analysts tracking the company, seven maintain a 'buy' rating and two recommend a 'hold' on the stock, according to Bloomberg data.
The average 12-month consensus price target implies a potential upside of 10.5%.
