Tata Steel is planning to sell stake in its various group companies, including Tata Motors, considering high debt load and declining steel prices. With this initiative, the company plans to raise Rs 7,200 crore. It owns 5.6% in Tata Motors, worth Rs 5,014 crore, which it might sell to its parent company, Tata Sons, in order to raise funds for expansion in Odisha and repay high cost loans.
The steel maker had already sold a 4.37% stake in Titan Industries, the entire stake in subsidiary Sila Eastern, and the entire stake in Wuxi, at a profit of Rs 940 crore, in 2012-13.
