Tata Motors revvs up

Tata Motors is in the limelight today too, emerging amongst the top three gainers. The stock price has risen from yesterday’s close of Rs.405.35 to Rs.424.80.

There was a huge block deal today morning which is why the volumes show an over 70 times rise. Some 1.12% of its equity or 3.23 crore shares changed hands at Rs.421.50/share and the buyer is Tata Sons.

The word on the street, though yet to be confirmed by the company is that Tata Sons is planni9ng to spend around $300 million to hike its stake in Tata Motors.  

This is a very good move as promoter stake in Tata Motors, as at 30th June 2017 is quite low at 34.73% of which Tata Sons holds 31.60%. FII holding is at 23.49%.

In todays era, such companies look like sitting ducks with so many predators on the prowl. Thus Tata Sons shoring up its stake is a good thing.