The share price of Tata Motors climbed more than 2 percent after reports suggested that the company was planning to monetise its assets. A decline in raw material prices also helped the stock.
At 2.08 pm, Tata Motors was trading 2 percent higher on the National Stock Exchange at Rs 440 and Tata Motors DVR shares were up 3 percent at Rs 218.
Earlier in the day, Moneycontrol exclusively reported that Tata Motors’s subsidiary Tata Technologies had initiated preliminary steps to evaluate an initial public offer (IPO) on the back of accelerated demand in electric vehicles and the aviation segment. The company has already onboarded Citi for the IPO.
Tata Technologies is a global product engineering and digital services company.
The stock also got a boost from a decline in prices of metals and other commodities that the company uses as raw materials. This comes amid robust sales growth in domestic markets.
The easing of Covid curbs and reopening of China, which is a big market for Jaguar Land Rover, too, has helped the stock to perform better than many of its peers.
In the last five sessions, the stock has gained 7 percent, however, year to date it is down 11 percent. Nonetheless, the stock remains one of the top “buys” in the auto sector for many analysts. The average target for the counter is around Rs 500.
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