Morgan Stanley moves to buy 1.73% stake in Tata Motors

MUMBAI: Morgan Stanley has initiated the process to buy Tata Motors shares from the market for an undisclosed buyer. The investment bank has offered to buy five crore shares, or 1.73 % stake in Tata Motors, at a price up Rs 499.80 a piece, which is up to 10% above Monday's closing price. The stock fell 2% to close at Rs 454 on Monday on the the BSE.

At Rs 499.80 per share, the deal would be valued at roughly Rs 2,500 crore. Tata Motors' American Depository Receipt (ADR) rose 5% on Monday following the news of the stake purchase offer by Morgan Stanley.

According to the deal sheet, the book will open on Tuesday and close on Thursday . The investment banker did not disclose the name of the buyer.


Life Insurance Corporation held 5.20% stake in the company as on September 30, 2016 while ICICI Prudential Life held 1.56% stake. Other major investors in the company include Abu Dhabi Investment Authority and Government of Singapore, which own 1.39% and 1.65% stake in the company.

Tata Motors has lost nearly Rs 31,000 crore or about 19% in market capitalisation since October 24.