New Delhi: Tata Sons today hiked its stake by nearly 2 per cent in Tata Motors by buying additional shares for Rs 2,430 crore, days before the auto maker's shareholders' meet to discuss the ouster of Cyrus Mistry as director.
Tata Sons has purchased a total of 5 crore shares, amounting to 1.73 per cent stake, of Tata Motors, according to bulk deal data available with the stock exchanges.
The shares were bought on an average price of Rs 486.13, valuing the transaction at Rs 2,430.65 crore. Currently, Tata Sons holds 26.98 per cent stake in Tata Motors.
Following the transaction, shares of Tata Motors rose 3.48 per cent to settle at Rs 470.35 apiece on the BSE. During the intra-day trade, the stock surged by around 5 per cent to touch the day's high of Rs 477.
Tata Motors has called an extraordinary general meeting (EGM) on December 22 to seek shareholders' approval for removing Mistry and Nusli Wadia as directors of the company. Ousted from Tata Sons, Mistry continues as chairman of Tata Motors.
In a sudden and dramatic turn of events last month, Mistry was unceremoniously removed as the chairman of Tata Sons and replaced by his predecessor Ratan Tata in the interim, triggering a confrontation between the single-largest shareholder and the Tatas.
Returning to Tata Sons after the abrupt removal of Mistry, Ratan Tata has moved quickly to consolidate his grip over the USD 103 billion salt-to-software group by seeking to remove the ousted chairman from the boards of group firms. Mumbai-based Tata Motors is India's largest automobile company, with consolidated revenues of Rs 2,75,561 crore in 2015-16.