Tata Sons buys stake worth over Rs 3,200 crore in three companies of the group
With this, it hopes to reduce cross-holding of Tata Group companies and simplify structure.
Tata Sons on Tuesday bought shares worth more than Rs 3,200 crore in three Tata Group companies – Tata Motors, Tata Chemicals and Tata Global Beverages. The move was part of efforts to disentangle the firms from cross-holding and to simplify structure, The Times of India reported.
The holding company bought 1.34% of Tata Motors’ shares at Rs 421.44 on the Bombay Stock Exchange for Rs 1,634 crore. It bought 4.1% shares in Tata Chemicals at Rs 642.55 each and 6.8% shares in Tata Global Beverages at Rs 213.35 per stock.
Tata Sons now has 32.4% stake in Tata Motors, 30.3% in Tata Global Beverages and 23.5% in Tata Chemicals.
Reducing cross-holdings was part of Tata Sons Chairman N Chandrasekaran’s initial strategy. With this, the company hopes to give cash to the individual firms so they can reduce debt and focus on expanding their business.