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Tata Sons buys group firms' shares worth Rs 531 crore amid market sell-off

The largest investment was made in Tata Steel, with Tata Sons buying shares worth Rs 222 crore at an average price of Rs 287 per share

Jash Kriplani  |  Mumbai 

Tata
The company bought shares on a day when the stock markets racked up their largest single-day loss in terms of points

Tata Sons, the promoter company of the Tata group, on Thursday bought shares worth Rs 531 crore in four group in a bulk deal on the National Stock Exchange (NSE).

The company bought shares on a day when the stock markets racked up their largest single-day loss in terms of points.

The largest investment was made in Tata Steel, with buying shares worth Rs 222 crore at an average price of Rs 287 per share.

on Thursday ended 4 per cent lower on the NSE.

The stock is down 39 per cent since the beginning of February. Year-to-date, it is down 37 per cent.

also bought Rs 177 crore worth of shares in Indian Hotels at an average buying price of Rs 107. On Thursday, the share price of the hotel company was down 3.5 per cent. Year-to-date, the stock is down 23 per cent. Analysts say the hotel company can see some pressure on its stock because of coronavirus.

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“The share purchase could be attributed to promoters looking to increase their stake, with prices falling to levels they deem to be below the fair value of their businesses,” said S P Tulsian, chief executive officer of sptulsian.com.

held 31.6 per cent in Tata Steel, and 36.4 per cent in Indian Hotels Company, as of December 31, 2019.

The company bought shares worth Rs 53 crore in Tata Power, and Rs 79 crore in DVR. Year-to-date, the share price of is down 28 per cent. DVR shares are down 43 per cent year-to-date.

According to broking houses, promoter group can act during such broad market sell-offs, to arrest the sharp price declines and protect investors’ interests.

Tata Sons held 34.26 per cent in at the end of December 2019.

First Published: Thu, March 12 2020. 21:48 IST
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