Tata Motors shares on top gear after fund raising plan; zooms over 20%

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October 13, 2021 10:26 PM

The stock jumped 20.43 per cent to settle at Rs 506.75 on the BSE. During the day, it zoomed 23.56 per cent to its 52-week high of Rs 519.95.

Tata Motors shares on top gear after fund raising plan; zooms over 20%In traded volume terms, 89.05 lakh shares were traded at the BSE and over 19.79 crore shares at the NSE during the day.

Tata Motors shares soared more than 20 per cent and other Tata group too gained on Wednesday, a day after the auto maker announced plans to raise USD 1 billion for its passenger electric vehicle business.

The stock jumped 20.43 per cent to settle at Rs 506.75 on the BSE. During the day, it zoomed 23.56 per cent to its 52-week high of Rs 519.95.

It jumped 20.44 per cent to settle at Rs 506.90 on the NSE.

The company’s market valuation also jumped Rs 28,538.6 crore to Rs 1,68,256.60 crore on the BSE.

In traded volume terms, 89.05 lakh shares were traded at the BSE and over 19.79 crore shares at the NSE during the day.

Frenzied buying was also witnessed in other Tata group stocks, with Tata Power Company Ltd rallying 14.48 per cent, Tata Chemicals zooming 14.16 per cent, Tata Investment Corporation Limited 14 per cent, Tata Consumer Products 3.92 per cent.

Tata Metaliks 2.07 per cent and Tata Steel 1.90 per cent on the BSE.

“Tata Group stocks were in focus especially Tata Motors after the company announced USD 1bn investment from TPG in electric vehicle division valuing EV business strong at USD 9.1 billion,” said Binod Modi, Head Strategy at Reliance Securities.

The fund will be used to partly fund investment of USD 2 billion (over Rs 16,000 crore) in the next five years by a new subsidiary of the company for expanding its EV business, including launching of 10 EV models.

Tata Motors Ltd (TML) and TPG Rise Climate, the dedicated climate investing strategy of private investment firm TPG, have entered into a binding agreement, under which the latter along with its co-investor ADQ, will invest in a subsidiary of Tata Motors that will be newly incorporated, the company said in a statement on Tuesday.

TPG Rise Climate along with co-investors shall invest Rs 7,500 crore in compulsory convertible instruments to secure between 11-15 per cent stake in this company translating to an equity valuation of up to USD 9.1 billion, it added.

ADQ is a strategic partner of Abu Dhabi’s government and is one of the region’s largest holding companies with direct and indirect investments in more than 90 companies locally and internationally.

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