Tata Motors gains as its arm inks pact to acquire Ford India’s manufacturing plant in Gujarat
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Tata Motors is currently trading at Rs. 468.90, up by 3.50 points or 0.75% from its previous closing of Rs. 465.40 on the BSE.
The scrip opened at Rs. 466.00 and has touched a high and low of Rs. 471.50 and Rs. 466.00 respectively. So far 53121 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 536.50 on 17-Nov-2021 and a 52 week low of Rs. 268.50 on 24-Aug-2021.
Last one week high and low of the scrip stood at Rs. 480.90 and Rs. 451.10 respectively. The current market cap of the company is Rs. 154567.50 crore.
The promoters holding in the company stood at 46.40%, while Institutions and Non-Institutions held 29.02% and 19.67% respectively.
Tata Motors’ subsidiary -- Tata Passenger Electric Mobility (TPEML) has entered into a Unit Transfer Agreement (UTA) with Ford India (FIPL) for the acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat, which inter-alia includes (i) entire land & buildings; (ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein; and (iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.70 crore.
FIPL will continue to operate its Powertrain Manufacturing Facility by leasing back the land and buildings of the Powertrain Manufacturing Plant from TPEML on mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of FIPL’s Powertrain Manufacturing Plant in the event of FIPL’s cessation of such operations.
The closure of the transaction will be subject to the receipt of relevant approvals from the government authorities and fulfilment of customary condition precedents. The government of Gujarat, TPEML and FIPL have already executed a tripartite MoU on May 30, 2022 to support all relevant approvals for the transaction.
TPEML would make the necessary investments to reconfigure the plant to adapt to Tata Motors' existing and future vehicle platforms. The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles at Sanand, which should help in a smooth transition.
