Parent churns Tata Motors stake

Tata group stocks drop firms dismiss concerns over Mistry’s letter

Tata group stocks drop firms dismiss concerns over Mistry’s letter

Tata Sons will acquire Tata Steel's around 2.85 per cent stake in the group's auto venture Tata Motors on or after June 23. Two analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The stock now has an average rating of "Buy" and an average target price of $44.50.

Tata Motors Ltd (NYSE TTM) traded up 0.20% on Friday, reaching $34.88. The company has a 50 day moving average of $35.08 and a 200-day moving average of $35.53. Tata Motors Ltd has a 52 week low of $31.71 and a 52 week high of $44.79.

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While these shares constitute 2.85 per cent of voting rights of Tata Motors, the volume weighted average market price of Tata Motors' scrip for 60 days stood at Rs 457.35 per share.

Large investors have recently added to or reduced their stakes in the stock. State Street Corp now owns 1,031,929 shares of the company's stock worth $35,489,000 after buying an additional 35,687 shares during the period. 1,683,193 shares of the stock traded hands. After the deal is completed, Tata Sons will hold 31.06% of voting rights in Tata Motors. Nomura Holdings Inc. now owns 62,815 shares of the company's stock worth $2,239,000 after buying an additional 128,183 shares during the last quarter. Russell Investments Group Ltd. acquired a new stake in Tata Motors during the fourth quarter worth $38,891,000. The fund owned 90,084 shares of the company's stock after buying an additional 46,270 shares during the period. Finally, Morningstar Investment Services LLC acquired a new position in Tata Motors during the first quarter valued at $221,000. Bank of America Corp DE now owns 1,461,331 shares of the company's stock worth $52,096,000 after buying an additional 918,944 shares during the last quarter.

Earlier, Nusli Wadia, then an independent director on the boards of Tata group firms, had said the cross-holding structure locked up value for companies like Tata Motors.