One of the best-performing Tata stocks this year has been Tata Motors. Shares of the automobile giant have surged close to 70% since the start of the year. Shares of the company were also upbeat on Friday morning as it announced buying a stake in Freight Tiger.
The Investment: If You Invest ₹10,000 In Tata Motors today, you will be able to buy around 15 shares of the company, with the stock trading at around ₹670. Now if the stock takes a U-turn and slumps to its 52-week low of ₹375.20 that it hit last December, those 15 shares would be worth around ₹5,575.
What’s Going With Tata Motors Today? Tata Motors has entered into an agreement to acquire a 26.79% stake in the digital platform Freight Tiger for ₹150 crore. The company, along with Freight Commerce Solutions, has signed a securities subscription agreement (SSA) and a shareholders agreement (SHA) for this acquisition, as stated in a regulatory filing by the Mumbai-based automobile major.
The SSA also includes a provision that allows Tata Motors to invest an additional ₹100 crore over the next two years, based on the prevailing market value at that time. Freight Tiger is a digital platform that offers comprehensive logistics solutions for cargo movement in India.
As per the filing, Freight Tiger facilitates more than 10 million trips on an annualized basis and has been working over the past seven years to integrate and improve the efficiency of cargo movements. The company on Thursday also announced that it will release its September quarter results on Nov. 2.
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Price Action: After trading higher through the hours of trade on Friday, shares of Tata Motors were down 0.045% to trade at ₹668.50 in the late hours of trading.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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