TATA MOTORS has sold over one crore shares in Tata Steel to Tata Sons, the holding company of all Tata group firms.
The shares were sold for a total value of Rs 486 crore. The amount will be used to fund the Jaguar-Land Rover acquisition. The deal will help Tata Sons to raise its stake in Tata Steel.
Earlier this year, Tata Motors bought Jaguar and Land Rover brands for $2.3 billion. The company has taken bridge loans to the tune of $3 billion to part finance the acquisition as well as future capital expenditure requirements. Tata Motors have also planned a Rs 4200 crore rights issue to finance the acquisition.
“This would help Tata Motors to raise funds in a low liquidity and high interest rate scenario,” said Hitesh Agrawal, head of research, Angel Broking. “This will also enable Tata Sons to increase Stake in the group company.”
Regards Apoorva