Tata Chemical is set to acquire majority shares in crop protection firm, Rallis India, at a price not exceeding Rs 850 per share; for 35 per cent stakes in the firm, held by promoter firms.

The firm, which already owns 9.4 per cent stakes in Rallis, will have 45.2 per cent stakes in Rallis India, post transaction.

The board of Tata Chemical has already approved the transaction, expected to take place within next few days. A statement by the company maintains, "The offer to buy shares in Rallis is regarded as an inter-se transfer among the qualifying promoters and being eligible for exemption from an open offer obligation."

Other Tata companies, such as Tata Tea, Tata Sons, Tata Investments and Ewart Investment, too hold some stocks in Rallis India.

Tata Chemicals, the world's second largest soda ash company and India's largest blended salt maker, has significant presence in agro nutrition business and hopes to further strengthen its position in future.

Meanwhile, shares of Rallis India surged 6.8 percent, and closed at Rs 736.95 percent on the Bombay Stock Exchange.