Tata's NBFC Stock Hits 5% Upper Circuit After Rs 4,082 Drop In 11 Days; 6 Tata Group Stocks Earn Big

Tata Group-backed investment company, Tata Investment Corporation has finally seen the much-needed bull run for the first time in 12 trading sessions. On March 27th, Tata Investment locked its 5% upper circuit, which comes after falling by 42% or over Rs 4,000 in 11 consecutive sessions. Tata Investment which went from its all-time high of Rs 9,744.40, to below Rs 5,700 in a matter of 11 days, lost market value of more than Rs 20,000 crore.

Initial public offering (IPO) by Tata Group is once again the reason for the bulls in Tata stocks including Tata Investment. But this time, the jolliness is multi-fold the largest conglomerate is planning not one but a whopping 8 IPOs in the next 2 to 3 years, as per reports. And that seems to be enough for investors to be merrier in Tata Group stocks.

On Wednesday, Tata Investment's share price stood at Rs 5,945.30 apiece, at its 5% upper circuit with a market cap of Rs 30,080.42 crore. The stock gained by Rs 283.10 in a single day.

This comes after Tata Investment shed up to 41.89% or Rs 4,082.2 in 11 days. Tata Investment which saw a massive rally of nearly 29% from January 1st to March 7th due to buzz that Tata Sons IPO may be launched in the next 1 and half years, had hit a roadblock when a news report said that Tata Sons is looking to other options for avoiding IPOs.

Tata Investment touched its all-time high of Rs 9,744.40 on March 7th, which was also the last green day for the company. From this level, Tata Sons dropped as low as Rs 5,662.20 on BSE by the end of the March 26, 2024 trading session as excitement on Tata Sons IPO dulled.

Accordingly, Tata Investments' market value also dipped by Rs 20,717 crore to Rs 28,648 crore as of March 26, compared to a market cap of Rs 49,365 crore as of March 7, 2024.

Coming to the latest development, ET reported that Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing and Tata Batteries are among the list of companies being primed to tap the capital markets.

It needs to be noted that Tata Group has made no official statement on its IPO plans. And GoodReturns.In could not confirm the same.

But for now, the bull wagons have appeared back in Tata Investment. With the latest rise, there are 6 Tata Group companies, of which 5 are listed on BSE and NSE, are among the top winners as they hold a portion of Tata Investment's shares.

Here's how much of Tata Investment, these six companies hold:

1. Tata Power: As of December 31, 2023, Tata Power holds 7,94,416 equity shares or 1.57% of Tata Investment, as per BSE data.

2. Tata Chemicals: Tata's salt and soda ash maker, Tata Chemicals currently holds up to 4,41,015 equity shares or 0.87%.

3. Tata Steel: Tata Group's steel giant's shareholding in Tata Investment is around 2,28,015 equity shares or 0.45%.

4. Tata Consumer Products: Further, the FMCG giant of Tata Group holds 1,46,872 equity shares or 0.29% in Tata Investment.

5. Trent Ltd: Trent holds Tata Investment in two ways. Firstly, the company's shareholding is around 31,793 equity shares or 0.06% in the NBFC. While Trent-backed subsidiary Trent Brands also holds 16,330 equity shares or 0.03% in the NBFC. Together, Trent holds 48,123 equity shares or 0.09% in Tata Investment, which is the lowest Tata holding in the company.

6. Tata Sons: Tata Sons, the holding company of Tata Group is the major shareholding of many Tata companies including Tata Investment as well. Tata Sons has lost the most in Tata Investment's current selling spree. As of December 31, 2023, Tata Sons holds about 3,46,64,663 equity shares or 68.51% in the NBFC.

Tata Investment funds a diversified portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses with a history of strong operating and financial performance.

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