Tata Motors gives up early gains despite deal to pick up 27% in Freight Tiger

Shares of Tata Motors pared their morning gains to trade flat later on October 20 despite signing a Rs 150-crore deal to acquire a stake in digital platform Freight Tiger.

Tata Motors will acquire 26.79 percent in Freight Tiger. It has signed a securities subscription agreement (SSA) and a shareholders agreement with Freight Commerce Solutions for the acquisition.

The SSA also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at a prevailing market value, the company said in a regulatory filing.

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After rising 1.1 percent in early trade, the counter gave up all its gains to trade lower. As of 12.37pm, the shares were trading down by 0.19 percent at Rs 667.50 on the NSE.

Freight Tiger is a digital platform that provides end-to-end logistics value chain solutions for cargo movement in the country. The platform connects shippers, carriers, logistics service providers and fleet owners to a single digital marketplace.

“We are committed to transforming the road logistics industry with our innovative solutions and services. We believe that by playing a larger and deeper role in bringing all the stakeholders together to improve road logistics efficiency, we can create value for our core customers: the fleet owners,” said Girish Wagh, executive director of Tata Motors.

Share price movement, stockholding pattern

Tata Motors gave investors 67.5 percent returns over the course of one-year, while Nifty 50’s one year run came in at 11.6 percent.

As of the April-June quarter shareholding data, the promoters have maintained a 46.4 percent stake in Tata Motors over the quarter. FIIs held a stake of 17.7 percent, while DIIs had 18.9 percent shares in the company. The public owned 17 percent of Tata Motors shares.

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