Stock Matrix – Tata Motors and L&T

May 31, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

TATAMOTORS has decided to raise Rs 7200 crs for funding the JLR acquisition. It will be diluting the present equity and will be offered as rights in three types of instruments. It is step in right direction for it will safeguard the future of Tata Motors on one hand and since the JLR business will be a separate business owned by Tata Motors , the fruits will be all for TMs and without the liability beyond the initial contribution that too from the freshly raised equity. Needless to say that the TM will have tax saving on the interest out go till the conversion of debentures in to equity.

L&T has posted good results for the last quarter ended March 08. The top line growth assures that the infrastructure spending is growing whatever the impressions be.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

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