Tata Finance gains from merger move

DALAL STREET SPIKES

Tata Finance scrip touched a new high of Rs 64.50 in the intra-day trades ahead of the company's board meeting to consider merger with Tata Motors. The stock finally closed at Rs 59.85, up 11.35 per cent in a rather subdued trading session.

The gains were on back of impressive volumes of more than 13.60 lakh shares on the BSE. Sources said, the merger could prove boon to the Tata Finance investors resulting in renewed buying interest.

Tata group companies hold majority stake in Tata Finance. As on December 31, 2004, Tata Industries hold 42.7 per cent stake in Tata Finance, whereas Tata Sons hold a 30.18 per cent stake. Tata Motors held 9 per cent stake in Tata Finance.

Meanwhile, Tata Motors ended 3.68 per cent lower to Rs 475.10. Tata Motors is also considering the merger of two of its unlisted subsidiaries Telco Dadajee Dhackjee and Suryodaya Capital and Finance with itslef.