Tata Chemicals acquired 4.99% stake in Rallis India

Tanushree Jaiswal 19th July 2023 - 03:53 pm

Tata Chemicals has recently acquired a 4.99% stake in Rallis India through a block deal, where they purchased 9.7 million shares at ₹215.05 per share. This transaction amounted to a total deal value of ₹208.60 crore, resulting in Tata Chemicals' stake in Rallis India increasing from 50.06% to 55.04%.

Rallis India, which manufactures, distributes, sells, and markets crop protection and crop nutrition products, reported a 5% year-on-year decrease in net profit for the April-June quarter. The net profit was ₹63 crore, but revenue from operations fell by 9% to ₹782 crore from the previous year.

The decline in revenue can be attributed to challenges faced by Rallis India's crop care segment, which experienced a 9% year-on-year decline in revenue during the first quarter of the fiscal year 2024. These challenges were mainly due to delayed monsoons and a decrease in fertilizer costs.

In terms of the future, Rallis India's management has stated a cautious forecast for FY2024 exports, predicting a modest rebound in the second half of the fiscal year once channel inventories ease out.

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Tanushree Jaiswal

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