Tata Motors down 3% after block deal; stock down over 11% in a month

Tata Motors Share Price NSE, Tata Motors Block Deal: Tata Motors shares fell by 2.87% to ₹ 959.70 per share on the BSE on Tuesday, September 17, amid reports that around 1.9 crore shares representing 0.4% stake in the company changed hands at ₹ 970 per share in the block deal window. The deal size was reported to be ₹ 1,758 crore.
Pursuant to the scheme of arrangement, TML Securities Trust sold over 1.14 crore new ordinary shares (NOS) on the stock exchanges for distribution of fractional share entitlements as well as tax liabilities.
Tata Motors shares have seen volatility recently. The stock has fallen by more than 11% in a month.
Last week, the Competition Commission of India (CCI) approved the proposed merger of Tata Motors Finance with Tata Capital.
Tata Capital (TCL) is a subsidiary of Tata Sons and operates as a Non-Banking Financial Company-Investment and Credit Company (NBFC-ICC).
TCL is primarily engaged in the business of lending, leasing, factoring, financing and distribution of financial products.
In June this year, the boards of Tata Motors, TCL and TMFL had approved the merger of TMFL with TCL through the NCLT mechanism.
As consideration for the merger, TCL will issue its equity shares to the shareholders of TMFL, resulting in TML’s effective shareholding in the merged entity being 4.7 per cent.
In FY24, TCL and TMFL reported profit after tax of ₹3,150 crore and ₹52 crore, respectively.
In another major development, Tata Motors last week said it has reduced prices across its electric vehicle model range by up to Rs 3 lakh.
The Mumbai-based automaker said it has reduced the price of Nexon EV by up to Rs 3 lakh, Punch EV by Rs 1.2 lakh and Tiago EV by up to Rs 40,000.