Tata Sons bought five crore shares of Tata MotorsBSE 0.56 % through a bulk deal worth Rs2430 crore on Tuesday ahead of the automaker’s shareholders’ meet on December 22 to consider the removal of Cyrus Mistry from its board. The holding company of all Tata Group companies bought the shares at an average price of Rs486.13 per share, a premium of about 7% to Tata Motors’ closing price of Rs454.55 on Monday. The stock ended up 3.5% at Rs 470.35 on Tuesday.
The total deal represented 1.73% of the company’s equity capital and was aimed at raising the group company’s holding in the company to secure the vote against Mistry. As of September 30, promoters held 33% stake in Tata Motors. Out of this, Tata Sons held 27%, Tata Industries held 2.5% and Tata Steel held 2.9% stake. Foreign Portfolio Investors owned 26% in Tata Motors at the end of the second quarter while state-owned Life Insurance Corporation of India held 5.2% stake.
Mistry was removed as Chairman of the salt-to-software group on October 24 and was replaced by predecessor Ratan Tata in the interim.
In its EGM notice, Tata Motors had set December 15 as the record date, which means that those holding shares of the company before that date can vote in the EGM.
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Source: Economic Times
