Tata Steel's deals in Tata Motors under fire
For about five years, Tata Steel has been serious about paring debt by selling non-core assets. And, has raised Rs 17,500 crore.
So, it was no surprise when the company sold 38.5 million shares of Tata Motors at Rs 324.60 each to institutional investors on September 18. The same day, it sold an additional 37.9 mn shares to parent Tata Sons for Rs 330 each. The transactions together brought Rs 2,500 crore to the company.
However, a closer look at Tata Steel’s holdings in Tata Motors reveals it also bought 8.34 mn shares at Rs 448 each for Rs 374 crore by subscribing to the automobile company’s rights issue. These shares were allotted to the company in May, and the recent sales have been at prices lower than what it paid in the rights issue.
The company chose not to respond to detailed queries sent on Friday on the purchase and sale of Tata Motors shares in the past six months.
“The debt levels in Tata Steel have been high for a while, including when they subscribed to the rights issue,
For about five years, Tata Steel has been serious about paring debt by selling non-core assets. And, has raised Rs 17,500 crore.
So, it was no surprise when the company sold 38.5 million shares of Tata Motors at Rs 324.60 each to institutional investors on September 18. The same day, it sold an additional 37.9 mn shares to parent Tata Sons for Rs 330 each. The transactions together brought Rs 2,500 crore to the company.
However, a closer look at Tata Steel’s holdings in Tata Motors reveals it also bought 8.34 mn shares at Rs 448 each for Rs 374 crore by subscribing to the automobile company’s rights issue. These shares were allotted to the company in May, and the recent sales have been at prices lower than what it paid in the rights issue.
The company chose not to respond to detailed queries sent on Friday on the purchase and sale of Tata Motors shares in the past six months.
“The debt levels in Tata Steel have been high for a while, including when they subscribed to the rights issue,
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