Mumbai, April 8 (IANS): Automotive major Tata Motors Ltd. clarified on Wednesday that it was not selling stake in the group firm Tata Technologies Ltd. (TTL).

Refuting media reports, the Pune-based company said in a statement here that it had no intention to sell majority or strategic stake in TTL, which was strategically important for its business.

Tata Motors holds 72.32 percent equity stake in TTL along with its subsidiary, while rest of the Tata group has 15.47 percent.

"Media reports of Tata Motors divesting 90 percent of its stake in TTL are incorrect," the statement noted.

The auto firm, however, will continue to explore opportunities for optimising its capital deployment through various measures and improve operating cash flows, better working capital management, encashment of none-core assets, value realisation and rights offering.

As TML plans to offer a rights issue of its shares when market conditions are favourable, it has filed a letter of offer with the stock exchanges.

The $38.9-billion (Rs.232,834 crore) Tata Motors is a market leader in commercial vehicles and among the top in passenger vehicles.