Tata Motors gains after clarification

Tata Motors rose 1.18% to Rs 518.90 at 09:38 IST on BSE, after the company said it would be filing an appeal against the CCI order pertaining to penalty on 14 car makers.

Meanwhile, the S&P BSE Sensex was up 131.45 points or 0.5% at 26,574.26

On BSE, so far 39,017 shares were traded in the counter as against average daily volume of 4.49 lakh shares in the past one quarter.

The stock hit a high of Rs 519.80 and low of Rs 516.70 so far during the day. The stock had hit a record high of Rs 521.85 on 20 August 2014. The stock had hit a 52-week low of Rs 286.35 on 28 August 2013.

The large-cap company has equity capital of Rs 547.34 crore. Face value per share is Rs 2.

Tata Motors after market hours on Tuesday, 26 August 2014 in a clarification with regard to penalty imposed by the Competition Commission of India (CCI) said that the order pertains to proceedings initiated by CCI in 2011 for investigating the conduct of several leading passenger vehicle manufacturers alleging restricted covenants imposed by them for supply of spare parts and other diagnostic tools in the after-market. In its order the CCI has directed the 14 passenger vehicle companies to undertake in India compliances and filing of a report within 180 days, Tata Motors said. The company would be filing an appeal against this order before the appropriate authorities, Tata Motors added.

The CCI on Monday, 25 August 2014, levied a total penalty of Rs 2544.64 crore on 14 car makers at the rate of 2% of the average turnover after it found them to be in contravention of the provisions of the Competition Act, 2002. The penalty levied to Tata Motors is Rs 1346.46 crore.

Tata Motors reported 212.7% jump in consolidated net profit to Rs 5398.21 crore on 37.2% growth in net sales to Rs 64150.74 crore in Q1 June 2014 over Q1 June 2013.

Tata Motors is India's largest automobile company, with consolidated revenues of Rs 232834 crore ($38.9 billion) in 2013-14. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer.

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