Tata Motors shares fell 4 per cent in intra-day trade on Friday after Tata Steel sold its stake worth up to Rs 1,250 crore in the company.
Tata Steel today sold 1.33 per cent stake in group firm Tata Motors to institutional investors for Rs 1,250.69 crore.
Tata Motors closed at a low of 2.71 per cent at Rs 328.75 apiece on Friday.
Meanwhile Tata Steel shares fell 0.52 per cent to close at 229.0 apiece.
"The company based on the review of its portfolio is proposing to sell shares of face value of Rs 2 each of Tata Motors to institutional investors over the stock exchange for a value not exceeding Rs 1,250 crore," Tata Steel said in a BSE filing.
The company had earlier told that the price for sale to institutional investors will be discovered through a book-building process. The shares were expected to be in an indicative range of Rs 324.50 to Rs 338.05.
Tata Steel, which owns 5.5 per cent stake in Tata Motors, will be offloading 1.3 per cent stake in the company.
Last month, Tata Steel had sold 2.18 per cent of its stake in another Tata group firm Titan to Tata Sons for over Rs 637 crore.