Tata Sons pledges additional 5% equity in Tata Motors

Mumbai-based Tata Motors, India’s largest vehicle manufacturer, has declared that its parent company, Tata Sons, has pledged a further 5.27 per cent in the company, taking its total pledge to 13.42 per cent.

In a statement to the National Stock Exchange (NSE), Tata Motors said Tata Sons had pledged 24 million equity shares in the company. This is in addition to what Tata Son’s earlier pledge of 37.2 million shares in Tata Motors.

The transaction took place on March 4, when the closing price of Tata Motors stood at Rs 143.10. Tata Motors did not disclose the amount raised by Tata Sons. However, the market value of the pledged shares based on the closing price of March 4 stands at Rs 344 crore.

About a month ago, Tata Sons had pledged 8.15 per cent shares in Tata Motors. The parent company has also pledged 14.6 per cent in Tata Steel and 13 per cent in Tata Power. According to the NSE data, as of December 31, 2008, Tata Sons holds 28.94 per cent equity, or in excess of 13 million, shares in Tata Motors.