Mumbai: Auto giant Tata Motors on Thursday opened weak on the Bombay Stock Exchange (BSE) index and dipped 5% amid news reports that the company has run into payment problems with vendors and suppliers.
It’s shares slipped 5.28% to touch an intra-day low of Rs128.10. Later, it was quoted at Rs130.95, down 3.18% on the BSE.
Similar movement was seen on the National Stock Exchange (NSE), where the scrip touch an intra-day low of Rs129.20, down 4.16%. It was later trading at Rs130.90, down 3.36% on the bourse. A total of 71.04 lakh shares were traded on the bourses.
Traders said the news that the company has run into payment problems with vendors and suppliers has dented investor sentiment in a bearish market.
The company, while announcing its third quarter results had said it would be scaling down its planned investments for the next two-three years by Rs700-800 crore from an initially planned Rs2,000-3,000 crore.
It had also said it was going on a cost saving drive targeting to save around Rs1,000 crore in the next three years.
Besides, this news comes at a time when Tata Motors, is grappling with declining sales and is also bearing the financial burden of British Hybrid luxury cars brands Jaguar and Land Rover, the market analysts added.