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Tata Steel on Friday sold its entire 2.9 per cent stake in Tata Motors to Tata Sons through a block deal on the BSE. A block deal of 8.35 crore shares was executed at an average price of ₹452.80 a share. At that price, the deal size stood at ₹3,780.88 crore.
Pruning cross-holdingsLast week, the Tata group had said to reduce cross-holdings, Tata Sons, the holding company of the $103-billion Tata group, will acquire Tata Steel’s 2.85 per cent share in Tata Motors on or after June 23. After the stake buy, Tata Sons’ holding in Tata Motors will increase to 31.06 per cent from the current 28.2 per cent.
With Friday’s selling, Tata Steel has completely exited from Tata Motors.
Earlier in May, a Kotak Institutional Equities note said a reduction in cross-holdings within the Tata Group will result in unlocking of value for listed entities, benefiting companies such as Tata Power, Tata Chemicals, Tata Global and Tata Motors by allowing them to lower their debt and interest expenses.
Tata Sons owned 29.75 per cent of Tata Steel as of March-end, while Tata Motors owned just 0.46 per cent of the the steel major.
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