Tata Investment Corporation Shares Surge by 20%
Tata Investment : On Tuesday, shares of Tata Investment Corporation Ltd saw a remarkable surge, rising by 20% to reach Rs. 7,406.15, its upper circuit limit. The stock closed the day with a 19.45% increase at Rs. 7,372.30. This marks a significant gain of 73.13% on a year-to-date (YTD) basis.
Stock Performance Overview
This recent surge follows a period of underperformance. Between March and July, Tata Investment's stock dropped by nearly 13%, after a sharp rise of over 100% in January and February 2024. Tata Sons holds a majority stake of over 68.5% in Tata Investment Corp, with other Tata Group companies like Tata Power, Tata Chemicals, Tata Steel, Tata Consumer Products, and Trent holding smaller stakes ranging from 0.5% to 1.6%.
Additional Surveillance Measures
The BSE and NSE have recently placed Tata Investment Corp's securities under the long-term Additional Surveillance Measure (ASM) framework. This measure is used by exchanges to alert investors about increased volatility in share prices, ensuring more cautious trading.
Stakeholdings in Tata Group Companies
Tata Investment Corp holds stakes in various Tata Group companies. Its largest investment is in Tata Chemicals, with a 5.97% stake, followed by Tata Consumer Products at 4.65% and Trent at 4.28%. The company also holds smaller stakes, ranging from 0.03% to 3%, in companies like Voltas, Titan Company, Tata Elxsi, Indian Hotels, Oriental Hotels, Tata Steel, Tata Motors, Tata Power, and TCS.
Tata Sons’ Recent Financial Moves
In a related development, Tata Sons has returned its registration certificate to the Reserve Bank of India (RBI) after repaying over Rs. 20,000 crore in debt. This move allows Tata Sons to remain unlisted, avoiding the RBI's listing requirements.
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Following the repayment, Tata Sons' liabilities have been reduced to Rs. 363 crore in non-convertible debentures and preference shares. Additionally, the company has deposited Rs. 405 crore with SBI and provided an undertaking to the RBI as part of this process.
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