Tata Motors, Tata Chemicals and Tata Global Beverages gained 2.37% to 5.03% at 14:00 IST on BSE after the counters reportedly witnessed a series of block deals today, 19 September 2017, in which a combined 8.6 crore shares changed hands.
Meanwhile, the S&P BSE Sensex was up 36.55 points, or 0.11%, to 32,460.31.
Tata Motors jumped 5.03% to Rs 425.75. On the BSE, 4.74 crore shares were traded in the counter so far, compared with average daily volumes of 19.28 lakh shares in the past one quarter. As per reports, the company had said to be selling shares equivalent to around 1.7% stake to undisclosed buyers. According to the report, Tata Sons, the promoter of Tata Group is planning to increase its stake in Tata Motors.
Tata Global Beverages gained 2.37% to Rs 218.40. On the BSE, 4.41 crore shares were traded in the counter so far, compared with average daily volumes of 6.11 lakh shares in the past one quarter. On 12 September 2017, Tata Chemicals' board accepted an offer from Tata Sons for sale of 4.31 crore equity shares of Tata Global Beverages held by it to Tata Sons. Tata Chemicals held 6.84% in Tata Global Beverages as on 30 June 2017.
Tata Chemicals gained 2.91% to Rs 661.25. On the BSE, 1.05 crore shares were traded in the counter so far, compared with average daily volumes of 46,784 shares in the past one quarter.
On 12 September 2017, the company had said that it proposes to sell up to 1.05 crore shares of Tata Chemicals to Tata Sons. The transaction is expected to be executed on or after 18 September 2017 at or around the prevailing price on the date of proposed sale, subject to no material market movements in price since the date of this disclosure, it had said on that day. Tata Global Beverages held 4.39% stake in Tata Chemicals as on 30 June 2017.
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However, details of buyers and sellers were not available.
As per reports, around 3.23 crore shares or 1.12% stake of Tata Motors, 1.05 crore shares or 4.1% stake of Tata Chemicals and 4.32 crore shares or 6.8% stake of Tata Global Beverages changed hands in various block deals.
The move is part of a larger strategy adopted by Tata Sons chairman N. Chandrasekaran to disentangle cross-holdings of group companies and simplify structures.
Tata Sons' shareholders are scheduled to vote on 21 September 2017 to change its legal status to a private company rather than a public company which will restrict the Mistry family's ability to sell its stake to external investors. The Mistry family is planning to vote against the move.
As of 30 June 2017, Tata Sons held 31.6%, 19.35% and 22.64% stake in Tata Motors, Tata Chemicals and Tata Global Beverages, respectively.
On 24 October 2016, the board of Tata Sons (the group's holding company) voted to remove Cyrus Mistry from the post of chairman, resulting in a slugfest between Ratan N Tata, then chairman emeritus and now interim chairman, and Mistry himself. Natarajan Chandrasekaran was named the new chairman shortly after.
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