Tata Motors today said Ratan Tata has hiked his stake in the company to 0.05% through an open market transaction, leading to a surge of 6% in the company's scrip on the BSE.
In a filing, Tata Motors said its Chairman Tata had purchased 4,25,000 ordinary shares yesterday having a face value of Rs 2 each on National Stock Exchange for a total consideration of Rs 9.94 crore through the open market route.
Following this transaction, his holding in the company went up to 0.05% from 0.03% earlier, it added.
When contacted, a Tata Sons spokesperson said: "He bought these shares in his personal capacity and it is the open period for the company."
Tata Motors said the transaction was carried out through Dhanki Securities Ltd.
With the announcement of his hiking stake, shares of Tata Motors today soared by nearly 6% on the BSE.
The heavyweight counter settled at Rs 240.05, up 5.75%. During the day, the scrip shot up by 6.36% to Rs 241.45.
On the NSE, the scrip was up 5.65% at Rs 239.50.
The stock was the top performer among the blue-chip counters on both BSE and NSE.
On the volume front, 33.43 lakh shares were traded on the BSE, while more than one crore shares changed hands on the NSE during the day.