Tata Motors hits a new high

Tata Motors hit a new 52-week high at Rs.523.10 today and it continues to remain strongly in the green, up almost 2%.

The stock has hit a high after the company announced that it would be filing an appeal against the CCI order, which ordered a huge penalty on 14 auto companies.

In a Press Release issued by the company, it has stated that it has received an order dated August 25, 2014 from the Competition Commission of India (CCI) being one of the 14 Passenger Vehicle Manufacturers wherein a penalty of 2% of the average annual turn-over for the years FY 2007-08, 2008-09 and 2009-10 has been imposed. Out of the total penalty levied on 14 Passenger Vehicle Manufacturers of aggregating Rs.2,544.65 crores, the penalty levied to Tata Motors is Rs.1,346.46 crores being on the consolidated global turnover of the Tata Motors Group (instead of turnover only pertaining to Passenger Vehicle Business, in India).

The Order pertains to proceedings initiated by CCI in 2011 for investigating the conduct of several leading Passenger Vehicle Manufacturers alleging restricted covenants imposed by them for supply of spare parts and other diagnostic tools in the after-market. In its Order the CCI has directed the 14 Passenger Vehicle companies to undertake in India compliances and filing of a report within 180 days.