Tata Consumer Rights Issue: Tata Consumer, a part of salt to aviation conglomerate Tata Group, announced a rights issue worth ₹3,000 crore on Tuesday. The rights will be issued at ₹818 per share.
The company has planned to issue a total of 3,66,47,492 shares aggregating up to ₹2,997.77 at a discount of 34.97 per cent, as a regulatory filing.
The stock of the company closed 4.42 per cent higher at ₹1,258 on Tuesday on National Stock Exchange (NSE.)
As per the filing, the record date is July 27 while the rights will be issued from August 5 till August 19.
The owner of multiple FMCG brands including Tetley tea and Ching’s Secret noodles had reported a net profit of ₹217 crore for the quarter ended March 31, registering a decline of 19 per cent from ₹269 crore in the year-ago period.
The revenue of the company, however, jumped 8.5 per cent to ₹3,927 crore in the three-months period ended March 31, the company had said in an exchange filing on April 23.
Tata Motors Share Price Today: Tata Motors has announced the split of its business into two segments – commercial vehicles (CV) and passenger vehicles (PV). According to the company’s assessment, this will be a big step but market analyst rating agency Nomura has given a big statement on this step of Tata Motors. There is decent demand for CV, JLR and PV vehicles in India and all rivals have their own markets. Therefore, this demerger plan of Tata Motors will not be able to do much.
Tata Motors Share Price Today
Tata Motors Share Price Today: Nomura estimates that individual businesses will have the freedom to pursue their strategies more effectively in the medium term. The analysis looks optimistically at the PV business for value creation in the coming years. Tata Motors’ PV segment has seen a significant turnaround since 2020, with its market share rising to 13.5% by the ninth month of FY2024. Nomura attributes this success to the company’s focus on safety, attractive design and feature-rich vehicles.
According to the brokerage firm, Tata Motors could become India’s second largest PV manufacturer by financial year 2025-26 as it aims to increase its penetration in the electric vehicles (EV) sector in the country. Nomura has currently maintained the target price of ₹1,057 on Tata Motors.
Tata Motors Share Price Today: Currently, with more than 70% market share, Tata Motors is actively contributing to the growth of the EV sector in India. The company aims to introduce 10 EV models in its portfolio by FY 2026 and make 50% or half of its total vehicle production EVs by 2030. If these plans are successfully implemented then adequate value creation capability can be achieved.
Despite the PV business having an EBITDA margin of 6.5%, the overall margin has been impacted by negative EV margin (-8.2% in Q3). Nomura expects EV margins to improve over time, especially as losses from product development costs subside. Additionally, the CV business may see a re-rating due to growing market share and increased profitability.
Tata Motors Share Price Today: The demerger, to be executed through the NCLT arrangement scheme, is seen as the next logical step after the first subsidization of PV and EV businesses in 2022.
The demerger will be presented to the TTMT Board of Directors for consideration and approval from shareholders, creditors and regulatory authorities will be required to complete it. If everything goes well, the process will take 12 to 15 months to complete.
