Tata Motors vrooms on $312 mn stake sale plan

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On Monday, Mint reported that Tata Motors was selling shares worth up to Rs2,000 crore through a block trade, while on 12 September, Mint had reported that Tata Sons will be increasing its stake in Tata Global Beverages and Tata Chemicals.

Tata Chemicals, Tata Motors, Tata Global Beverages and Royal Orchid Hotels are among the other stocks to see a surge in volumes on BSE today, 19 September 2017. In June, Tata Sons had acquired an additional 2.89 per cent stake in Tata Motors for a little over Rs 3,782 crore from Tata Steel through open market transactions. The stake buy by Tata Motors' main promoter led to a sharp spike in the price of the stock, which closed 4.6% higher at Rs 424 on the BSE.

Tata Sons is planning to buy 1.7% stake at Rs 421.56 per share.

With the deal, the group company's holding in Tata Motors will increase to 33.3 percent. It bought shares worth Rs673.39 crore in Tata Chemical from Tata Global Beverages and shares worth Rs1,633.83 crore in Tata Motors.

Up to Monday's close, Tata Motors stock had fallen 14.2 per cent this year. The stock jumped 4.95% at Rs 86.90.

Tata Sons also spent Rs 922 crore in another block deal to buy 6.84% stake in Tata Global. Interestingly, Tata Sons' 6.84% stake purchase in Tata Global from Tata Chem would have triggered an open offer in normal circumstances (it exceeds the 5% limit under creeping acquisition). Tata Global Beverages rose as much as 2.37 percent and Tata Chemicals gained less than a percent.

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