Tata Motors shares edge higher on ₹2000 crore fundraise buzz. Do you own?

Stock market today: Ahead of the board meeting to consider raising funds up to ₹2,000 crore, Tata Motors shares opened flat and touched an intraday high of ₹666.45 apiece on the NSE, logging around a 2% intraday gain during the early morning deals on Monday. The board of directors of Tata Motors Limited will consider and approve the proposal to raise funds not exceeding ₹2,000 crore. The company board will discuss and approve the issuance of Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures on a private placement basis.

According to stock market experts, Tata Motors shares have remained in the base-building mode for nearly six months. However, they maintained that auto major is a quality stock and recent fall was due to the disappointing quarterly numbers. They said that company is mulling to raise funds to the tune of ₹2,000 crore through private placement, which has triggered fresh buying in the scrip. 

“The market is expecting some CAPEX expansion and rise in the company's business volume, which may lead to strong quarterly numbers in Q4 results 2024. So, we can expect some upside in the stock due to this fundraising move,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Tata Motors share price target

Expecting a further rise in Tata Motors shares, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Tata Motors shares recently formed a bullish reversal pattern right below the key resistance at ₹659 on the weekly chart. After consolidating last week, the stock attempts a breakout above the crucial ₹660 to ₹665 zone."

"A dead cat bounce on the weekly timeframe is highly probable, initially targeting the 50-day moving average at ₹701. If momentum sustains, the weekly swing structure points to an upside target of ₹771. With strong volume confirmation and improving market sentiment, a breakout could trigger a sharp rally. Traders should watch for sustained closing above ₹665 for confirmation and ride the uptrend,” Jain said.

Tata Motors news

Tata Motors informed the Indian stock market exchanges last week about the scheduled board meeting, saying, "We hereby wish to inform you that a Meeting of the duly constituted Committee of the Board of Directors of the Company is scheduled to be held on Wednesday, March 19, 2025, inter alia, to consider and approve the issuance of Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures on a private placement basis aggregating up to ₹2,000 crore."

Tata Motors share price history

In the recent stock market crash, Tata Motors shares witnessed some selling pressure, but the Indian auto major managed to receive the minimum beating this fall because the stock has already been in the base-building mode for the last six months. In one month, Tata Motors' share price has fallen around 3.50 per cent, whereas in the last six months, Tata Motors' share price has dipped over 30 per cent. In YTD time, Tata Motors share has fallen over 10 per cent. However, for a long-term investor, Tata Motors shares are one of the multibagger stocks as it has delivered over 750 per cent returns to its positional investors in the last five years.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.