Daijiworld Media Network- Mumbai

Mumbai, Jul 30: Shares of Tata Motors took a sharp dip on Tuesday, falling as much as 3.80% to Rs 666.05 on the NSE following media reports suggesting the company is close to acquiring Italian truck manufacturer Iveco for $4.5 billion.

According to an Economic Times report, the deal — said to be in advanced stages — would involve Tata Motors buying Exor’s stake in Iveco and launching a tender offer for the remaining shares, excluding the company’s defense business. The acquisition, if finalized, would become the Tata Group’s second-largest deal ever. Iveco has also confirmed being in advanced discussions.

Despite the broader market showing signs of resilience, with the Nifty 50 up 0.04%, Tata Motors’ shares were seen trading 2.96% lower at Rs 671.85 by 9:30 am. Notably, the stock has seen a 42.48% decline over the past 12 months and is down 9.73% year-to-date.

Tuesday’s trading session saw unusually high activity, with volumes rising 4.6 times above the 30-day average. The stock's Relative Strength Index (RSI) stood at 49.8, suggesting it is hovering near a neutral zone.

Market analysts remain divided on the stock. Out of 35 analysts tracked by Bloomberg, 17 maintain a ‘buy’ rating, 12 recommend holding, and six advise selling. The 12-month consensus price target remains at Rs 741, indicating a potential 10% upside from current levels.

While investors are awaiting official confirmation of the deal, concerns around the acquisition’s scale and its impact on Tata Motors’ balance sheet appear to have triggered the early market reaction.