Tata Motors gains 3% on unit stake sale buzz

MUMBAI: Shares of Tata Motors rose as much nearly 3 per cent on media reports that it was in talks to raise about $100 million by selling a stake in a group firm. Dealers, however, said the counter could see some selling pressure later in the day.

Buyout firms, including General Atlantic Partners, were eager to pick up equity in Tata Technologies, an unlisted engineering and design group company and provides software for industries including automotive, the newspaper said.

Tata Motors, which bought marque brands Jaguar and Land Rover for about $2.3 billion last year, has been battling a cash crunch due to falling vehicle sales in a slowing economy and has said it aimed to raise up to $250 million from divestments of its holdings in various group companies.

Managing Director Ravi Kant had said in January the divestment process would continue and would be spread over the next three to four quarters.

At 10:30 am, the company���s shares eased some early gains and was trading at Rs 148.15, up 1.75 per cent on the BSE.