Equity Alert: Tata Motors dn 2% amid reports of stake sale in arms
MUMBAI--10:47AM--Shares of Tata Motors were down nearly 2% at 377
rupees on
weak broad market, as investors ignored media reports the company
plans to
sell up to 25% stake in six subsidiaries, dealers said.
The company has initiated talks with private equity funds to sell
stake
in its profit-making unlisted subsidiaries including Tata Daewoo
Commercial
Vehicle Co, The Economic Times newspaper reported today.
"The company is trying various options to finance its Jaguar-Land
Rover
acquisition. Stake sale is one such effort. But investors are
concerned the
deal will weigh heavily on Tata Motor's books and reduce its
profitability,"
a senior dealer at a domestic brokerage house said.
Uncertainty over the company's Singur plant operations and roll
out of
Nano car on schedule is also weighing on the stock, the senior dealer
said.
The stock has strong support at 365 rupees intraday, he said.
So far today over 63,000 shares of the company have been traded on
NSE.
October futures of the stock was trading at 2-rupee discount to
the spot
price.
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