5% stake in 5 firms to cost Tatas Rs 12.5k crore

A year ago, Tata Sons could have bought this stake for Rs 8,000 crore

Tata group shares have recovered most of their lost value since the legal battle broke out between the conglomerate and former Tata Sons Chairman Cyrus Mistry.

The group’s plan to increase stakes in five key firms where holding company Tata Sons’ stake are low will cost Rs 12,475 crore.

The combined market value of Tata Motors, Tata Steel, Tata Power, Tata Chemicals and Indian Hotels stood at Rs 2,49,492 crore on January 27 against Rs 2,52,979 crore on October 24, the day Mistry was sacked.

A year ago, the combined market capitalisation of these five firms was Rs 1,58,841 crore