Mumbai: Shares of two Tata group firms - Tata Motors and Tata Steel – on Wednesday surged as much as 19% on the Bombay Stock Exchange (BSE), amid reports that the companies have raised over Rs3,000-crore debt from Life Insurance Corporation of India (LIC).
After opening firm of the bourses, Tata Motors surged 19.15% to a high of Rs364 on the BSE while Tata Steel jumped 14.36% to the day’s high of Rs376.40.
The surge in the scrip happened after media reports surfaced that Tata Motors has raised Rs1,250 crore through issue of non-convertible debentures (NCDs) to LIC to refinance the bridge loan taken at the time of the Jaguar Land Rover acquisition.
According to reports, Tata Steel has secured a Rs2,000 crore loan from LIC for infusing funds into its UK subsidiary.
Meanwhile, a similar movement of the scrip was witnessed on the National Stock Exchange, where Tata Motors witnessed a high of Rs365, up 19.40% over its previous close and Tata Steel gained 14.32% to witness a high of Rs376.70.
On the volume front, a good 83.15 lakh shares of Tata Motors changed hands on the BSE, while Tata Steel saw 58.41 lakh shares getting traded.