Tata Motors shares declined in early trade after Tata Steel informed BSE on Friday that the company is proposing to sell equity shares of face value of Rs 2 each of Tata Motors (Photo: PTI)
Tata Motors shares declined as much as 3.96 per cent in early trade after Tata Steel informed stock exchanges before market hours on Friday that the company is proposing to sell equity shares of face value of Rs 2 each of Tata Motors to institutional investors over the stock exchange for a value not exceeding Rs 1,250 crore. The price will be discovered through a book building process.
At 9.54 am, Tata Motors shares were trading 2.25 per cent down at Rs 330.30 apiece. It opened at Rs 330 and had touched a high and low of Rs 333.75 and Rs 324.50, respectively, in trade.
In a BSE filing, Tata Steel said, “Tata Steel also proposes to sell equity shares of face value of Rs 2 each of Tata Motors to Tata Sons around the market price through an off-market transaction for a total value not exceeding Rs 1,250 crore.”
For the quarter ended June 2015, Tata Motors registered a consolidated net profit of Rs 2768.91 crore, down 48.71 per cent, against Rs 5398.21 crore in the corresponding quarter a year ago. Gross sales of the company fell 5.61 per cent year-on-year to Rs 61221.33 crore.
On a year-to-date basis, the share price of Tata Motors declined 31.45 per cent to Rs 337.90 on September 16.
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