Tata Chemical soars 5% amid spurt in volumes, US arm restructuring

Shares of Tata Chemicals soared 5 percent in early trade on June 5 on the back of strong volumes as the company announced the restructuring of its US operations. In addition, the Tata Group’s Rs 13,000-crore capital expenditure plans to setup a giga lithium-ion manufacturing facility in Gujarat also aided sentiment.

Volumes in the counter were significantly higher as 35 lakh shares changed hands on the exchanges as against the one-month daily traded  average of nine lakh shares. Likewise, at 11.37 am, shares of Tata Chemicals were trading at Rs 1,014.60 on the National Stock Exchange, 4.62 percent higher than the previous close.

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Structure rejig

The company also announced revising the holding structure of its US operations from June 1 to reduce the number of intermediate entities. The restructuring move saw Tata Chemicals (Soda Ash) Partners undergoing a transformative conversion from a partnership into a limited liability company (LLC). As part of this transition, the entity will be rebranded as Tata Chemicals (Soda Ash) Partners LLC.

Additionally, the restructuring plan also includes the merger of two intermediate holding entities, TC (Soda Ash) Partners Holdings and TCSAP LLC, into the newly formed Tata Chemicals (Soda Ash) Partners LLC.

Furthermore, Tata Chemicals North America Inc. also saw the integration of Valley Holdings Inc., another intermediate holding entity. The restructuring reduces the number of US intermediaries held by the company and streamlines its corporate structure.

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