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Tata Sons, on Tuesday, increased its holding in Tata Motors by about 1.7 per cent through open market purchases.
According to bulk deal data on the NSE, Tata Sons bought five crore shares of the auto-maker at an average price of ₹486.13 a share. However, details about the sellers were not available at the exchange.
At the end of September, 12 promoters, including Tata Chemicals, Tata Investment Corporation, Tata Industries, Tata Steel and Tata Sons, held 33 per cent stake or 95.26 crore shares in Tata Motors.
The buying by Tata Sons assumes significance as the company has called an extraordinary general meeting of its shareholders on December 22 to decide the fate of Cyrus Mistry, the ex-chairman of Tata Sons.
Open to purchase moreAccording a Bloomberg report, the company is open to purchasing more equity before the EGM. The acquisition of shares by Tata Sons will consolidate its position ahead of the crucial EGM.
Currently, foreign portfolio investors hold 26.11 per cent stake in the company. These include Abu Dhabi Investment Authority (1.39 per cent) and Government of Singapore (1.65 per cent). Among domestic institutions, LIC held a significant 5.20 per cent stake in Tata Motors, and ICICI Prudential Life 1.56 per cent at the end of September 2016.
Mistry was ousted as chairman of Tata Sons, the holding company of Tata group of companies, on October 24 after leading the group companies for four years. Ratan Tata, Chairman Emeritus of the group, then took over the reins as interim chairman.
Acrimonious spatPost the boardroom coup, both sides are indulging in a bitter and acrimonious spat, with each side blaming the other publicly.
In an unprecedented move, Tata Sons’ interim chairman Ratan Tata has appealed to shareholders for support to remove the chairman.
Tata Industries was the first group company to hold its EGM on Monday (December 12). Shareholders preferred to side with Tata, as they voted in favour of a resolution to oust Mistry as director on the company’s board.
TCS, India’s biggest IT services firm, conducted its EGM on Tuesday, results of which are awaited.
On Tuesday, shares of Tata Motors climbed as much as 7 per cent in intraday deals to ₹477 but closed at ₹470.35, still a gain of 3.48 per cent on the BSE.
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