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Tata Motors Shares Tumble 2.87% After Block Deal – What’s Behind the 11% Monthly Drop?

Tata Motors shares fell 2.87% to ₹959.70 amid a ₹1,758 crore block deal. Recent developments include a CCI-approved merger with Tata Capital and EV price cuts up to ₹3 lakh.
Tata Motors Shares Tumble 2.87% After Block Deal - What’s Behind the 11% Monthly Drop?

Tata Motors shares slipped by 2.87% to ₹959.70 on the BSE on September 17, following a block deal where approximately 1.9 crore shares, or 0.4% of the company’s stake, were traded at ₹970 each. The deal amounted to ₹1,758 crore. The block deal was executed by TML Securities Trust, which sold over 1.14 crore new ordinary shares for fractional share entitlements and tax liabilities.

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Recently, Tata Motors’ stock has experienced a decline, falling over 11% in the past month. This drop comes amid several significant developments for the company. Last week, the Competition Commission of India (CCI) approved the merger of Tata Motors Finance Limited (TMFL) with Tata Capital Limited (TCL).

Also Read: Upcoming IPOs: 8 Major Tata Group IPOs to Launch – Check Details!

Tata Capital, a Tata Sons subsidiary and a non-banking financial company (NBFC-ICC), focuses on lending, leasing, and financing. The merger of TMFL with TCL, as part of an NCLT scheme, will see TCL issue equity shares to TMFL shareholders, resulting in Tata Motors holding a 4.7% stake in the newly merged entity.

In FY24, TCL reported a profit after tax of ₹3,150 crore, while TMFL’s profit stood at ₹52 crore. Additionally, Tata Motors recently announced price reductions for its electric vehicles, with cuts of up to ₹3 lakh for the Nexon EV, ₹1.2 lakh for the Punch EV, and ₹40,000 for the Tiago EV.

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रुपया मई के बाद का सबसे खराब सप्ताह का सामना कर रहा है: हालिया गिरावट के पीछे क्या है? जानें!

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