Tata Sons Buys 14 Lakh Tata Elxsi Shares

The Tatas have reorganised holding in their information technology company Tata Elxsi.

Tata Sons, the holding company for the Tata group, has purchased 14 lakh shares of Tata Elxsi from Tata Engineering, the ailing auto company of the group.

The deal was concluded on September 29, 2000, though no disclosure on the price was made. At the going price, the market worth of the shares would be around Rs 13 crore.

The realignment now takes the holding of Tata Sons in Tata Elxsi to 6.42 per cent, while the group holding would be over 40 per cent.

The move could be seen as one to strengthen the group holding through Tata Sons. Tata Sons, which has Tata Consultancy Services as a division, also holds around 75 per cent in Tata Infotech, the second largest of the group's infotech companies.

 

A fourth one, Tata Technologies, is wholly owned by Tata Engineering. The recent move will also raise Tata Engineering's other income. The auto major, grappling with a major demand recession, posted Rs 220 crore losses in the first half.