Tata Steel declines after selling shares of Tata Motors to Tata Sons

Tata Steel declined 2.1% to Rs 223.75 at 9:30 IST on BSE after the company sold through off-market transaction 3.7 crore ordinary shares of Tata Motors to Tata Sons on 18 September 2015,

Shares of Tata Motors rose 0.4% to Rs 329.70.

The company made the announcement after market hours on Friday, 18 September 2015,

Meanwhile, the BSE Sensex was down 223.36 points, or 0.85%, to 26,008.95.

On BSE, so far 71,267 shares were traded in the counter, compared with an average volume of 11.89 lakh shares in the past one quarter.

The stock hit a high of Rs 227 and a low of Rs 223.70 so far during the day. The stock hit a 52-week high of Rs 512.50 on 19 September 2014. The stock hit a 52-week low of Rs 200.40 on 25 August 2015.

The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.

Tata Steel said that as part of its portfolio restructuring, the company has on 18 September 2015, sold through off-market transaction 3.7 crore ordinary shares of the face value of Rs 2 each of Tata Motors to Tata Sons at a price of Rs 330 per share, aggregating to Rs 1249.99 crore.

Tata Steel had announced during market hours on Friday, 18 September 2015, that it sold 3.85 crore shares of Tata Motors to institutional investors over the stock exchange on 18 September 2015, for a total consideration of Rs 1250.69 crore. Tata Steel said that the share sale was part of its portfolio restructuring.

As on 30 June 2015, Tata Steel held 16 crore shares, or 5.54% stake, in Tata Motors. Tata Sons held 74.10 crore shares, or 25.67% stake, in Tata Motors.

Tata Steel's consolidated net profit jumped 126.2% to Rs 762.96 crore on 17.7% fall in total income to Rs 31220.93 crore in Q1 June 2015 over Q1 June 2014.

Tata Steel is one of the biggest global steel companies.

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