Tata Steel shines bright

Tata Steel which had closed on Friday at Rs.502.10, opened Rs.9 higher today morning at Rs.511, going up to Rs.512.50. Its 52-week high is at Rs.520.40.

The stock is up on news that the company plans to sell 8.36 crore shares with face value of Rs.2 each to Tata Motors.

Announcing this on 17th June, Saturday, the company stated that the transaction is to executed on 23rd June at or around the prevailing price on the date of proposed sale, subject to no material market movements in price since the date of this disclosure.

These shares will be purchased by Tata Sons and it is buying to restructure its investment portfolio, which is essentially an attempt to reduce cross holding within group companies. As at 31st march 2017, Tata Sons held 29.75% stake in Tata Steel and 28.71% in Tata Motors. Tata Steel held 2.9% in Tata Motors.