Tata Motors raises Rs 236 cr via share sale in Tata Steel

The country's largest auto maker, Tata Motors, today sold 50 lakh shares worth over Rs 236 crore in Tata Steel through open market transactions.

Tata Motors has sold 50 lakh shares in Tata Steel at an average price of Rs 473 a piece, aggregating to Rs 236.50 crore through a bulk deal on the Bombay Stock Exchange.

Besides, in a separate deal on the BSE, Tata Sons, the holding company of Tata Group, has bought 50 lakh shares in Tata Steel for an aggregate Rs 236 crore.

Last month, Tata Motors has pledged its entire holding of over 1.04 crore shares or 1.31 per cent stake in Tata Steel.

The country's largest auto maker had last month come to the public for the second time in a year to raise about Rs 1,500 crore via fixed deposit schemes, offering up to 9.88 per cent annual interest for a three-year deposit.

In December 2008, it borrowed between Rs 2,000 crore and Rs 2,500 crore from public at an annual interest rate of up to 11 per cent for a period of up to three years as it was struggling to finance its $2.3 billion JLR buyout.

Tata Motors had suffered a net loss of Rs 2,505.25 crore in 2008-09 mainly on account of JLR that it acquired in March 2008. The expensive JLR marquee suffered on account of the economic meltdown.

Shares of Tata Steel closed at Rs 479.10, up 2.12 per cent, while Tata Motors was up 1.97 per cent at Rs 561.80 on the BSE.