This Indian automobile giant is up by 1.23% today on declaration of disinvestment in its subsidiary

Tata Motors on Monday evening has given the in-principle approval for partial disinvestment in its subsidiary 'Tata Technologies' through the IPO Route.

No Tata Group company has made its debut on the domestic bourses since TCS in 2004. Tata Autocomp Systems cancelled a $260 million IPO, and Tata Play (formerly Tata Sky) filed for a confidential pre-filing of offer documents earlier this month.

Tata Motors in their recent announcement has informed that the board has decided to explore partial disinvestment of its investment in Tata Technologies, a global product engineering and digital services company.

In the disclosure, Tata Motors said, “We wish to inform you that the IPO Committee [duly constituted by the Board of Directors of Tata Motors Limited (the “Company”)], at its meeting held today, i.e., on December 12, 2022, has accorded its in-principle approval to explore the possibility of partial divestment of the Company’s investment in Tata Technologies Limited [“TTL”], a subsidiary of the Company, through an IPO route at an opportune time, subject to market conditions, applicable approvals, regulatory clearances (including observations from the Securities and Exchange Board of India) and certain other considerations.”

Tata Motors is a part of the $100 billion Tata Group. The company is among the world’s leading manufacturers of automobiles. It offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defense vehicles to the world. It has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries, associate companies and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

The 52-week high is Rs 528.35, whereas the 52-week low was Rs 366.05. At noon, the share is trading at Rs 419.20 which is 1.23% up from its previous day's close.