Tata Motors shares rise as Tata group firm mulls divesting stake in Tata Technologies via IPO

Shares of Tata Motors advanced 2 per cent in Tuesday's trade after the company said its board will explore the possibility of divesting stake in arm Tata Technologies via IPO route.

In a filing to BSE, the company on Monday said the IPO Committee, duly constituted by the board of directors of Tata Motors , accorded its in-principle approval to explore the possibility of partial divestment of the company's investment in subsidiary Tata Technologies [TTL], through an IPO route at an opportune time, subject to market conditions, applicable approvals, regulatory clearances.

Tata Technologies is engaged in engineering and design, manufacturing, product development, product lifecycle management and IT service management for clients in aerospace and automotive original equipment manufacturing and their suppliers.

"The company will make further announcements of all material developments relating to IPO, as and when required, as per SEBI LODR Regulations and other applicable laws. This is for the information of the exchanges and the members," Tata Motors said.

The IPO would be subject to market conditions, applicable approvals, regulatory clearances, including observations from the Securities and Exchange Board of India, and certain other considerations, Tata Motors added.

Following the development, the stock rose 1.73 per cent to hit a high of Rs 421.30 on BSE. The scrip has fallen 16 per cent year-to-date. On Tuesday, against buy orders of 1,75,957 shares, the counter had sell orders of 2,11,844 shares as of 9.28 am.

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