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Company Update: Tata Motors

Company Update: Tata Motors
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First Published: Fri, Sep 26 2008. 09 47 AM IST
Updated: Fri, Sep 26 2008. 09 47 AM IST
Tata Motors has initiated talks with private equity (PE) funds to sell up to 25% stake each in its six profit-making unlisted subsidiaries.
The move comes in the wake of company’s plan to raise Rs3,000 crore through divestment of stakes in subsidiaries and selling of shares in listed entities to part finance the JLR deal.
The biggest arm of the six entities is the Tata Daewoo commercial vehicle company. The other arms include HV Excels, HV Transmissions, Tata Motors Finance, Tata Technologies and Telco Construction Equipment (Telcon). Tata Motors intends to have only a majority stake in these subsidiaries.
The stake sale is planned to be complete by June 2009. We maintain ACCUMULATE rating on the stock, with a target price of Rs445.
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First Published: Fri, Sep 26 2008. 09 47 AM IST
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