The shares of the company opened flat in the Monday trading session as it has entered into a share purchase agreement in one of its subsidiary company for an aggregate consideration of INR 1,613.17 cr.
With a market capitalization of 2,21,648 crores, Tata Motors started there Monday trading at 667 and currently trading at 668. The company’s scripts witnessed an intra-day flat opening, indicating a gain of around 0.25 % as compared to its previous close.
Flat opening was observed after the company regulator filing with the exchange, informing entering into a share purchase agreement to sell 9.9% stake in its subsidiary company Tata Technologies for an aggregate consideration of INR 1,613.17 cr.
According to the filing the company will receive an amount of 1,467 crore as a consideration for sale of its 9.0% stake in Tata Technologies Ltd to TPG Rise Climate SF Pte Ltd and an amount of 146.7 crore will be received by the company as consideration for sale of its 0.9% stake from Ratan Tata Endowment Foundation.
Tata Technologies is founded as a business unit of Tata Motors.In coming days Tata Motors have decided to come up with the IPO of its subsidiary after 19 years. Promoters have a holding of 76.7% and non promoters have 23.3% of stake in pre IPO. After the launch of the IPO promoters will be liquidating around 20% of their stake.
With the business presence within and outside India, Tata Technologies Ltd is associated with product engineering it provides services in engineering and design,product lifecycle management , manufacturing, product development, and IT services management to automotive and aerospace original equipment manufacturers and also provide service for industry machinery companies.
Written by Vaibhav Patil
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