IFCI Sells over 27 lakh DVR shares of Tata Motors :)

DVr shares

IFCI has sold more than 27 lakh Differential Voting Right (DVR) shares of Tata Motors in the last two trading sessions through the bulk deal route.

🙂

At the time of the issue of these shares in November last year, IFCI was the sub-underwriter to Tata Motors’ DVR issue, along with JM Financial.

🙂

Of the 6.4 crore DVR shares issued by Tata Motors, IFCI held 81.96 lakh shares (12.77 per cent) as on June 30.

After the sale, IFCI’s stake has fallen to 8.4 per cent.

🙂

Marketmen said IFCI is likely to have sold the DVRs to take advantage of the rise in the share prices.

IFCI had bought the shares at Rs 305 a piece in November last year.

😉

The Tata Motors DVR stock closed up 4.8 per cent at Rs 368.95 on the BSE.

🙂

“IFCI purchased these shares at a lower price; this is quite a decent exit proposition. They have made fair bit of profit from this sale,” said Mr Jagannadham Thunuguntla, Head of Equities at SMC Capitals.

🙂

Another reason for IFCI’s sale of the DVR shares in the last two trading sessions could be that they wanted to sell before the release of Tata Motors’ consolidated first quarter results on Monday, Mr Thunuguntla said.

🙂

Company has raked in Rs 98 crore through market sales. 🙂

Tata Motors made a consolidated net loss of Rs 329 crore for the quarter ended June 30.

Tata Motors was the first company to issue shares with DVRs in India in November 2008 when it issued 6.4 crore DVR shares as part of its Rs 4,145-crore rights issue to repay the loan taken for its acquisition of Jaguar-Land Rover.

🙂


2 responses to this post.

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  2. […] here to see the original: IFCI Sells over 27 lakh DVR shares of Tata Motors « SMC Global Blog Share and […]

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