Tata Chemicals Share Price Soars 119.32% on Novabay Acquisition Drive

The share price rose to its highest level so far this month today, with an intraday gain of 119.32%.

The surge follows Tata Chemicals Ltd’s announcement of a €25 million acquisition of Novabay Pte. Ltd, a Singapore-based producer of premium-grade sodium bicarbonate. The deal, structured as a 100% equity stake acquisition through Tata’s subsidiary, is expected to close by March 2026. The transaction aligns with Tata’s strategy to expand into non-cyclical, high-value markets, leveraging Novabay’s established presence in pharmaceutical, food, and personal care sectors. The acquisition is funded via Tata’s internal reserves, signaling confidence in the long-term growth potential of the specialty bicarbonate market.

Novabay’s product, used in hemodialysis, skincare, and food applications, benefits from consistent global demand, particularly in healthcare and emerging markets. The company’s fully automated facility, coupled with cGMP and API certifications, positions it to meet stringent quality standards. Its current production capacity of 60,000 tonnes, with potential to scale to 100,000 tonnes, supports growth in regions like Southeast Asia and the Middle East, where demand for premium-grade bicarbonate is rising.

Post-acquisition, Novabay will gain access to Tata’s global distribution networks, enhancing scalability and market reach. The deal is not a related-party transaction, ensuring transparency. Analysts note that the acquisition strengthens Tata’s foothold in a resilient sector, with Novabay’s operational efficiency and expansion potential expected to drive value creation. The stock’s sharp rise reflects investor optimism about the strategic fit and long-term earnings visibility in a non-cyclical industry.