Tata Motors shares in news today on arbitral award win for Nano’s scrapped Singur plant

Shares of domestic auto major Tata Motors Ltd are in news today after the company said it has won an arbitral award of Rs 766 crore plus interest to compensate for its investment in the now scrapped Singur plant in West Bengal. Tata Motors was in the process of setting up the plant to make Nano car there. The development comes ahead of Tata Motors Q2 and half yearly earnings set to be announced on November 1.

In the previous session, the Tata Group stock ended 1.94% lower at Rs 628.25 on BSE. Tata Motors stock opened higher at Rs 643.70 on Monday. During the session, the stock also hit an intraday low of Rs 622 and an intraday high of Rs 643.90 on BSE.

Market cap of the firm stood at Rs 2.08 lakh crore. Total 8.79 lakh shares changed hands amounting to a turnover of Rs 55.15 crore on BSE. Tata Motors stock fell to a 52-week low of Rs 375.50 on December 26, 2022 and a 52 week high of Rs 677.90 on October 16, 2023.

Also read: Singur plant case: Tata Motors wins arbitral award of Rs 766 cr plus interest at 11%

Tata Motors shares have surged 53.29% in a year and gained 59.13% in 2023. They have climbed 373% in three years.

Tata Motors stock has a one-year beta of 1, signaling high volatility during the period.

In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 46.2, signaling it's trading neither in the overbought nor in the oversold zone. Tata Motors shares are trading lower than the 10 day, 20 day, 30 day but higher than the 50 day, 100 day, 150 day and 200 day moving averages.

The tribunal said Tata Motors can recover a sum of Rs 765.78 crore with interest thereon at 11 percent per annum from September 1, 2016 till actual recovery thereof from West Bengal Industrial Development Corporation Limited (WBIDC).

The Tata Group’s auto arm said it has been allowed to recover a sum of Rs 1 crore towards the cost of the proceedings.

"With regard to the automobile manufacturing facility at Singur (West Bengal), this is to inform that the aforesaid pending Arbitral proceedings before a three-member Arbitral Tribunal has now been finally disposed of by a unanimous Award dated October 30, 2023 in favour of TML whereby Tata Motors has been held to be entitled to recover from the respondent (WBIDC) a sum of Rs 765.78 crore with interest thereon @ 11% p.a. from September 1, 2016 till actual recovery thereof. Tata Motors has also been held to be entitled to recover from the respondent (WBIDC) a sum of Rs 1 crore towards cost of the proceedings," said the automaker in a stock exchange filing.

The Bengal government had allotted about 1,000 acre farmland to Tata Motors for to build a car manufacturing plant especially its small car ‘Nano’.

The company had to scrap its plan in 2008 due to huge protest from political leaders and farmers in the area. However, the automaker had already made investments at the site. Later, the company shifted the manufacturing unit to Sanand in Gujarat.

Also read: Bharti Airtel Q2 results: Profit may fall in double digits; 30-50 lakh subscriber additions likely