A Dive into Tata Motors' Dropping Share Price and Upcoming Fund-Raise Plan
Plummeting Tata Motors Shares by 36% in a Year: Focus Intensifies on the Rs 500 Crore Fundraising Strategy
Gearing up for the May 13 board meeting? Here's what you should know about Tata Motors' tumultuous share journey and the hotly anticipated Rs 500 crore fund-raise plan.
Tata Motors' Sinking Stock PriceTata Motors' shares took a nosedive on the National Stock Exchange, plummeting 3.6% to a low of Rs 642.65. The stocks been on a steady downturn, having lost 3% over the past five trading sessions. The stock ended up being one of the major losers in the Nifty 50 on a busy trading day. Unfortunately, if you've held onto Tata Motors shares for a year, you'd be hoping for a time machine — the stock has plummeted a staggering 36% during that period.
The Trump Tariff StormThe ongoing Trump tariff woes have sent shockwaves through the auto industry. Jaguar Land Rover has temporarily halted US shipments in response to the proposed steep tariff increases. But worry not! On a lighter note, recent reports indicate that US President Donald Trump has signed a pair of orders to reassess the impact of his auto tariffs on Tuesday. A mix of credits and relief from other levies has been promised1, aiming to soften the blow for the struggling sector.
Tata Motors' Slump in Fleet OrdersJust before the implementation of a fresh set of 25% import taxes for automotive components, the auto industry collectively heaved a sigh of relief.
May 13 Board Meeting: Plans Unveiled?
Contrary to earlier reports, Tata Motors recently announced that its board will convene on May 2, 2025, to deliberate upon the issuance of rated, listed, unsecured, redeemable, non-convertible debentures on a private placement basis, amounting to a whopping Rs 500 crore2[5]. Unfortunately, no more details regarding the use of the raised funds or any matters related to the May 13 board meeting have been disclosed yet.
One thing's for sure: the May 2, 2025, board meeting will be a pivot point for Tata Motors, as it aims to secure crucial funds to help navigate through these challenging times. Stay tuned for updates and insights!
Tata Motors Q4 Sales: A Mixed Bag
In the fourth quarter of FY25, Tata Motors reported a 5% decline in its total domestic sales, with 2.46 lakh units sold compared to the 2.60 lakh units sold in the same quarter the previous year6. The company's passenger vehicle sales saw a sharper decline of 9%, with 1.47 lakh units sold, while its commercial vehicle sales dropped a modest 3% to 1.05 lakh units6.
Tata Motors Q3 Results: A Mixed Bag too!
In Q3 FY25, Tata Motors reported a net profit of Rs 5,451 crore — a 22% decrease from the previous year. However, the revenue from operations surged by 3% to Rs 1.13 lakh crore7. The company's consolidated EBITDA during the third quarter stood at Rs 15,500 crore.
Jaguar and Land Rover — Tata Motors' biggest subsidiary — delivered a sturdy performance in Q3FY25, with revenue for the quarter hitting £7.5 billion, a 1.5% increase compared to the previous year7.
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[5]: https://www.business-standard.com/article/companies/tata-motors-may-consider-raising-rs-500-crore-through-securities-on-a-private-placemen t-basis-122012801323_1.html
- The upcoming May 2, 2025 board meeting for Tata Motors could be a significant turning point in their efforts to secure funds for navigating the challenging market conditions.
- Tata Motors aims to raise Rs 500 crore through the issuance of rated, listed, unsecured, redeemable, non-convertible debentures on a private placement basis, as announced in their recent disclosure.
- The fund-raise plan comes at a time when Tata Motors' share price has plummeted by 36% over the past year.
- The ongoing tensions surrounding Trump tariffs have had a profound impact on the auto industry, leading companies such as Jaguar Land Rover to temporarily halt US shipments amid proposed steep tariff increases.
- The Trump tariff woes, however, may see some relief, as reports indicate that US President Donald Trump has signed a pair of orders to reassess the impact of his auto tariffs on Tuesday.
- In the competitive DEFi and general-news markets, keeping an eye on personal-finance updates, particularly in the business and technology sectors, can prove invaluable for informed investors.
- Tata Motors is not alone in its slump, as the auto industry feels the effects of the shifting market conditions, with companies experiencing declines in both passenger and commercial vehicle sales.
- During Q3 FY25, Tata Motors reported a net profit of Rs 5,451 crore, a 22% decrease from the previous year, but the revenue from operations saw a 3% increase to Rs 1.13 lakh crore.
- As we delve deeper into the investment landscape of 2025, trends in trading, portfolio management, and market dynamics should be closely watched, especially in industries such as automobiles and technology, where companies like Tata Motors are engrossed in securing their future in a rapidly evolving world.
