Tata Ind to transfer stake in Tata Elxsi

Mumbai: Tata Industries is transferring its 18.98 per cent stake in Tata Elxsi to group company Tata Sons at Rs 80 per share, reports The Economic Times.

Tata Sons will pay Rs 47 crore to Tata Industries for the stake. Tata Sons now holds more than 19 per cent in Tata Elxsi and its holding will rise to 38.15 per cent after the purchase.

"This is an inter-se transfer between promoters and will not attract the takeover code and, hence, no open offer will be required," a Tata Industries official said. Tata Sons division is Tata Consultancy Services which is being merged with a subsidiary company, Orchid. According to Tata Industries officials, the objective of the transfer is to consolidate all holdings in IT sector under Tata Sons.

Source: IRIS