Tata Motors fell 2.25% to Rs 330.30 at 12:23 IST on BSE after Tata Steel said it sold 3.85 crore shares of Tata Motors to institutional investors on stock exchange today, 18 September 2015.
Shares of Tata Steel were up 1.50% at 233.65. Tata Steel made the announcement during trading horus today, 18 September 2015.
Meanwhile, the BSE Sensex was up 496.09 points, or 1.91%, to 26,460.06.
Volumes were high on the counter. On BSE, so far 4.33 crore Tata Motors shares were traded in the counter, compared with an average volume of 9.38 lakh shares in the past one quarter.
The stock hit a high of Rs 333.75 and a low of Rs 324.50 so far during the day. The stock hit a record high of Rs 605.32 on 3 February 2015. The stock hit a 52-week low of Rs 304.10 on 24 August 2015.
The stock had outperformed the market over the past one month till 16 September 2015, falling 4.91% compared with 7.49% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, sliding 21.74% as against Sensex's 2.71% decline.
The large-cap company has an equity capital of Rs 577.44 crore. Face value per share is Rs 2.
Tata Steel announced that it sold 3.85 crore shares of Tata Motors to institutional investors over the stock exchange today, 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.
Based on the transaction, each Tata Motor stock was sold at Rs 324.67, which is 1.70% discount to the ruling market price.
Tata Steel announced before market hours today, 18 September 2015, that besides selling Tata Motors shares to institutional investors, it is also planning to sell shares of Tata Motors to Tata Sons around the market price through an off-market transaction for a total value not exceeding Rs 1250 crore.
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 Motors' consolidated net profit fell 48.7% to Rs 2768.91 crore on 6.2% fall in net sales to Rs 60180.57 crore in Q1 June 2015 over Q1 June 2014.
Tata Motors is a market leader in commercial vehicles in India. The company's British unit Jaguar Land Rover sells premium luxury cars.
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