Moneycontrol BureauTata Motors as well as Tata Motors (DVR) climbed 5 percent each intraday Tuesday after around 5 crore equity shares (representing 1.7 percent of paid up equity) changed hands in multiple block deals.
Around 5 crore equity shares exchanged through three multiple block deals on the National Stock Exchange at a price range of Rs 474.85-486.25 apiece.
At an average price of Rs 477.60 per share, Tata Motors' block deals are worth Rs 2,392 crore.
Morgan Stanley is likely to buy 5 crore shares of the company for its client at a premium of 10 percent to Monday's closing price of Rs 454 per share, according to CNBC-TV18 quoting people close to the development.
Sources also said the buyer might be the promoter themselves that is Tata Sons.
As of September 2016, promoter and promoter group including Tata Sons held 33 percent stake in Tata Motors.Anil Singhvi of Ican Investment Advisors said that he was amused by the Rs 2500 crore cheque.It is not the best allocation of funds, he said, adding that it was a misallocation of funds for taking Cyrus Mistry out. Many questions remain unanswered, he said, referring to whether Tata Sons will be looking at doing the same to other group companies.Meanwhile, TCS has called for extra-ordinary general meeting to remove Cyrus Mistry and Nusli wadia from the role of director of board. TCS board already removed Cyrus Mistry from Chairman position and nominated Ishaat Hussein as Chairman of the company.
At 10:32 hours IST, the stock was quoting at Rs 464.95, up Rs 10.40, or 2.29 percent on the BSE.
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