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.