Tata Chemicals shares fall over 8% after stock exits F&O ban

Spark Capital wrote in its note on March 4 that the most realistic way of playing this value unlocking opportunity will be through Tata Chemicals, as it held a 3% stake in Tata Sons.

However, sources told CNBC-TV18 over the weekend that the listing of Tata Sons is unlikely and the group is considering various options including paring debt, and hiving off entities like Tata Capital.

In a potential move to cut down group debt, Tata Sons on Tuesday sold a 0.6% stake in Tata Consultancy Services (TCS) for nearly ₹9,000 crore.

With the stock exiting the F&O ban, new positions can be created in the stock, which is not possible while the stock is in the ban period. Brokerage firm Kotak Institutional Equities maintained its "sell" rating on Tata Chemicals on March 12 with a price target of ₹780.

The brokerage in its note said that it expects Tata Chemicals' Earnings Per Share (EPS) to decline by about two-thirds over the financial year 2023 - 2025 amidst falling soda ash margins.

Kotak Institutional Equities advised investors to use that "speculative run-up" in the stock price as an exit opportunity.

Shares of Tata Chemicals ended 8% lower at ₹1,032. The stock has given up most of the gains it had made during its latest rally.