Tata Investment Corporation, the 87-year-old NBFC giant of Tata Group, which once held the title of top 2024 Nifty winner in the early months of the year, is no more at the top and rather has taken a U-turn. Although, up by over 50%, Tata Investment shares have lost significant value in less than two months. Since its all-time high on March 7, 2024, Tata Investment's share has nosedived by a whopping Rs 3,120 on BSE by the end of April month. A total of 6 Tata companies lose thousands of crores in these two months.
Tata Investment Share Price:
On April 30th, Tata Investment shares fell marginally to end at Rs 6625.50 apiece with a market cap of Rs 33,521.91 crore on BSE. The stock has fallen by Rs 3,118.90 or 32% since March 7th.
On March 7th, 2024, Tata Investment shares touched an all-time high of Rs 9,744.40 apiece before correcting significantly. At the start of 2024, Tata Investment shares were around Rs 4,258.30. From the start to March 7, the stock rallied by a whopping 129%. Also, on NSE, from January 1 to March 7, 2024, Tata Investment led a massive 58 billion dollar rally, with the majority of it covered in the first week of March. During this period, Tata Investment had gained by over 129% and emerged as an outperformer in the Nifty 500 index.
The majority of gains were seen in the first week of March due to the buzz that Tata Sons which is the largest shareholder of Tata Investment is planning an IPO soon. However, this driving factor was crushed soon after when reports also said that Tata Sons is looking at other options to abide by RBI's rule and avoid IPO listing. Since then, Tata Investment shares have been volatile.
There were periodical bulls and bears, and Tata Investment saw healthy buying when it announced its proposal for dividend payout on April 10. However, that bull sentiment was short-lived because Tata Investment on April 17 postponed the date for its Q4 results and dividend recommendation. The revised dates are yet to be announced.
In its regulatory filing on April 17, Tata Investment said, "This is to inform you that the meeting of the Board of Directors of the Company scheduled to be held on April 24, 2024, inter alia, to consider and approve the Audited Standalone and Consolidated financial results of the Company for the financial year ended March 31, 2024; and recommending the dividend, if any, has been postponed to a later date."
It added, "The Company shall inform the revised date of the Board meeting in due course."
From April 18 to April 30th alone, Tata Investment shares dived by 4.6% on BSE after the delay in dividend recommendation. This will be the first dividend announcement of 2024. Tata Investment has a long history of paying final dividends, and most likely the upcoming recommendation will be final as well for FY24.
In 2023, Tata Investment paid a dividend of Rs 48 per share, followed by its all-time high dividend payout of Rs 55 per share in 2022. As per Trendlyne data, Tata Investment has delivered up to 28 dividends since September 2000. Its data showed that in two decades, Tata Investment has delivered a total of whopping Rs 401.1 dividend per share to its shareholders.
Apart from dividend payout, Tata Investment has carried 1 bonus issue. The company issued 1 bonus share on the existing 2 shares with an ex-date in August 2005.
How Much Money Do These 6 Tata Stocks Lose?
1. Tata Sons: As of March 31, 2024, Tata Sons holds 3,46,64,663 equity shares or 68.51%. Since March 7, Tata Sons has lost the most in Tata Investment among other shareholders, to the tune of Rs 10,811.56 crore. On March 7, Tata Sons' investment was valued at Rs 33,778.63 crore (3,46,64,663 X Rs 9,744.40), while by the end of April 30, the investment was up to Rs 22,967.07 crore.
2. Tata Power: This powerhouse of Tata Group is the second largest investor. By the end of Q4, its shareholding stood at 7,94,416 equity shares or 1.57%. From March 7th to April 30, Tata Power lost Rs 247.77 crore in Tata Investment.
3. Tata Chemicals: The salt-maker of Tata Group holds about 4,41,015 equity shares or 0.87% in Tata Investment. Tata Chemicals has witnessed a loss of Rs 137.55 crore in less than two months in the company.
4. Tata Steel: This steel giant holds up to 2,28,015 equity shares or 0.45% in the NBFC. Tata Steel has lost about Rs 71.11 crore in 2 months.
5. Tata Consumer Products: This FMCG player of Tata holds about 1,46,872 equity shares or 0.29%. Tata Consumer lost about Rs 45.80 crore during this period.
6. Trent: Lastly, the retail company holds a total of 48,123 shares or 0.09%. Trent has lost about Rs 15 crore in this period in Tata Investment.
Together, these six Tata Companies have lost about Rs 11,328.81 crore in Tata Investment from March 7th to April 30th.
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