The company explained that the sale was carried out to facilitate the distribution of fractional share entitlements and to settle tax liabilities, as per the approved scheme.
Tata Motors said in a BSE filing, "The aforesaid intimation has been communicated to us today by Axis Trustee Services Limited, the Independent Trustee, which will now proceed to distribute sale proceeds in cash to the eligible ‘A’ Ordinary shareholders and credit the balance NOS as per entitlement to their respective demat accounts, shortly."
Axis Trustee Services Limited, the Independent Trustee, has communicated the sale of shares to Tata Motors. It will now proceed to distribute the sale proceeds in cash to eligible 'A' Ordinary Shareholders, while crediting the balance NOS to their respective demat accounts.
Tata Motors has assured that it will provide further updates to 'A' Ordinary Shareholders and stock exchanges once the cash distribution and share crediting process is complete.
NCLT clearance
Earlier, Tata Motors obtained approval from the National Company Law Tribunal (NCLT) for a scheme of arrangement that involves reducing its share capital by canceling 'A' Ordinary shares and compensating shareholders with newly issued ordinary shares.
Following the announcement, Tata Motors shares fell over 2% in afternoon trade on Tuesday at INR 965.7 on NSE. The restructuring is a part of Tata Motors' broader strategy to simplify its capital structure and enhance shareholder returns.
'Sell' rating for Tata Motors
Global brokerage firm UBS recently issued a 'Sell' rating for Tata Motors, with a target price of INR 825 per share. In its report, UBS expressed concerns over the rising discounts being offered by Tata Motors' subsidiary, Jaguar Land Rover (JLR), and questioned whether this should raise alarm for investors.
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