Leading automobile company, Tata Motors sold 11 million shares of Tata Steel to promoter company Tata Sons for Rs 456.78 crore. The sale was done in two tranches of 7 million at Rs 416.55 per share and 4 million at Rs 413 per share, according to data provided by the Bombay Stock Exchange (BSE).
As a result Tata Sons holding in Tata Steel has gone up to 30.77 per cent while Tata Motors' stake has reduced to 1.43 per cent from 2.93 per cent. Tata Motors had earlier mentioned that the company will look to unlock value in some of its group companies to raise resources mainly to fund the outstanding $1 billion loan repayment, which it availed last month.
The company stated in May that it had completed refinancing of the Jaguar Land Rover acquisition bridge finance, which stood at $3 billion. It had also said that the company has managed to extend the final maturity of $1 billion by 18 months up to December 31, 2010.
In September last year, Tata Motors had sold over 10 million shares in Tata Steel to Tata Sons and raised Rs 486 crore.
Share price of Tata Motors on the BSE climbed to an intra-day high of Rs 371.30 before closing 1.03 per cent higher at Rs 368.50 as compared to its previous close of Rs 364.75.