Tata Sons, the apex holding company of the Tata Group, has bought Rs 312 crore worth of Titan shares from Tata Global Beverages as part of its strategy to consolidate its interest in operating companies.
According to a report in PTI, the block deal transaction, executed on the BSE, has increased Tata Sons’ stake in the Bengaluru-based watch-to-jewellery maker by 1.04 per cent to nearly 21 per cent.
In the recent past, Tata Sons had bought Rs 746 crore worth of Titan shares (2.4 per cent) in two tranches from Titan International and Tata Steel. This purchase of operating companies’ shares is a usual investment practice by Tata Sons.
While for the parent company of the Tata Group such an activity aids in retaining the shares of operating companies within the group, for operating companies selling shares of sister concerns helps in raising funds to meet any immediate requirements such as paring debt.
The block deal transaction, executed on the BSE, has increased Tata Sons' stake in Titan to 21pc
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