Tata Motors stock rose over 3 per cent today after auto major announced that its subsidiary has inked a Memorandum of Understanding (MoU) with the Gujarat government for the potential acquisition of Ford India’s Sanand plant.
The large-cap stock rose to an intraday high of Rs 443.9, 3.33 per cent on BSE. The share opened higher at Rs 436.35 against the previous close of Rs 429.60. Tata Motors shares are higher than 5-day, 20-day, 50-day and 200-day moving averages but lower than 100-day moving averages.
The stock has gained 38.67 per cent in one year but lost 8.3 per cent since the beginning of this year. The market cap of the firm rose to Rs 1.46 lakh crore on BSE. Total 10.17 lakh shares changed hands amounting to a turnover of Rs 44.76 crore.
ALSO READ: IRCTC shares zoom 9% ahead of Q4 earnings
The share hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 268.50 on August 24, 2021.
“Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited (FIPL), have today signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility,” the Tata Group firm informed in an exchange filing.
The definitive transaction agreement between Tata and Ford will be signed in the next few weeks.
The deal would include the land and buildings, the vehicle manufacturing plant, machinery and equipment, and the transfer of all eligible employees of the Sanand plant’s manufacturing operations. The deal is subject to the signing of definitive agreements and relevant approvals. The statement by Tata Motors added that Ford will operate its Powertrain manufacturing facilities by leasing back the land and buildings of the Powertrain unit from TPEML
The Ford plant in Sanand is a state-of-the-art site, located adjacent to the Tata Motors Passenger Vehicles manufacturing facility.
Tata Motors will invest in new machinery and equipment required to make the unit ready to produce its vehicles. Following the investments, the plant would have a capacity of 3,00,000 units per annum, scalable to more than 4,00,000 units.
Tata stated that they expect this to take a few months. The plan will accelerate the enhancement of its PV/EV manufacturing capacity.