NEW YORK ( TheStreet) -- Daimler ( DAI) is selling its entire stake in Tata Motors ( TTM) to raise up to $429 million, according to Reuters. Daimler is putting up 25.6 million shares in Tata at 737.4 ($16.20) to 761.3 rupees each, a discount of 4 to 7% beneath the stock's Monday settlement, according to Reuters. Daimler owns about 5.3% of Tata's ordinary shares and about 4.7% on a fully diluted basis, according to Reuters. The automaker owns 25.6 million shares of Tata and is relinquishing them after more than 50 years of ownership, according to Bloomberg. Citigroup ( C) is overseeing the sale. "The stake hasn't taken Daimler anywhere in the last 40 years or so, and having cash these days is a luxury," Arndt Ellinghorst, an analyst with Credit Suisse ( CS) in London told Bloomberg. Ellinghorst said that Daimler is occupied with new truck ventures in Russia and the search for a small-cars partner, and is likely going for a more streamlined portfolio. Daimler is selling its shares in India's biggest automaker amid record car sales in India in February. The buying frenzy has in part been attributed to buyers trying to grab cars before interest rates move higher. Daimler shares have risen 0.5% to $45.30 Monday morning, while Tata American Depository receipts have plunged 4.3% to $17.80 following news of the sale. -- Reported by Andrea Tse in New York Follow TheStreet.com on Twitter and become a fan on Facebook.