Tata Motors falls 3% post block deal; stock slips over 11% in a month

As per the scheme of arrangement, TML Securities Trust sold over 1.14 crore new ordinary shares (NOS) on the stock exchanges for the purpose of distribution of fractional share entitlement as well as towards tax liabilities.

Last week, the Competition Commission of India (CCI) cleared the proposed merger of Tata Motors Finance into Tata Capital. 

Tata Capital (TCL) is a subsidiary of Tata Sons and is operating as a non-banking financial company—Investment and Credit Company (NBFC-ICC).

TCL is engaged primarily in the business of lending, leasing, factoring, financing, and distributing financial products.

In June this year, Tata Motors, TCL, and TMFL's board approved a merger of TMFL with TCL through an NCLT scheme of arrangement.

As consideration for the merger, TCL will issue its equity shares to the shareholders of TMFL, resulting in TML effectively holding a 4.7 percent stake in the merged entity.

In FY24, TCL and TMFL reported a profit after tax of ₹3,150 crore and ₹52 crore, respectively.

In another major development, Tata Motors last week said it has reduced prices of its electric vehicle model range by up to ₹3 lakh. 

The Mumbai-based automaker said it has reduced the price of the Nexon EV by up to ₹3 lakh, the Punch EV by ₹1.2 lakh, and the Tiago EV by ₹40,000.

"With these special, limited period prices, we are breaking the high acquisition cost barrier for EVs and bringing EV prices closer to similar petrol and/or diesel-powered vehicles," Tata Passenger Electric Mobility Chief Commercial Officer Vivek Srivatsa said.