In a remarkable turn of events, Tata Investment Corporation, a Tata Group-backed Non-Banking Financial Company (NBFC) stock, achieved an unprecedented milestone by reaching a new all-time high of Rs 8,016.85 on the Bombay Stock Exchange (BSE). This surge, marking a substantial gain from its initial valuation of Rs 300, has delivered an astounding 2,365% returns to investors.
During the special trading session held on Saturday, Tata Investment shares witnessed a 5% upper circuit freeze, signaling an overwhelming demand and a surge in buyer interest. The stock’s market capitalization currently stands at a formidable Rs 40,561.49 crore, reflecting its significant market impact.
Tata Investment’s bullish momentum is not an isolated event but part of a three-day winning streak. The stock’s value rose by 5% on the previous trading day and registered a 4% increase on February 29, underscoring its consistent upward trajectory.
The recent surge in Tata Investment’s performance aligns with the Union Cabinet’s approval of three semiconductor units under the ‘Development of Semiconductors and Display Manufacturing Ecosystems in India.’ Tata Group, a central player in India’s semiconductor mission, received approval for two semiconductor units with a staggering combined investment of Rs 1,18,000 crore.
Semiconductor Units and Investments:
- Tata Electronics: The company is set to establish a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, with an investment of Rs.91,000 crore. The fab will be located in Dholera, Gujarat.
- Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”): This unit, with an investment of Rs.27,000 crore, will be established in Morigaon, Assam, focusing on developing indigenous advanced semiconductor packaging technologies.
Bonus Share and Investor Gains:
Tata Investment’s remarkable performance since August 2005, when it announced its first bonus issue, is a testament to its robust financial standing. The stock has paid dividends consistently and issued bonus shares only once. Investors who held Tata Investment shares since its first bonus issue have witnessed a staggering 2,364.5% return on their investment.
The first bonus issue in 2005, at a ratio of 1:2, led to a significant multiplication of portfolios. Illustratively, an investment in 500 shares just before the ex-bonus date, valued at Rs 1,62,965, grew to Rs 60,12,637.5 by March 2, 2024, showcasing the stock’s multi-fold returns.
Tata Investment Corporation Limited, promoted by Tata Sons Ltd. in 1937, has evolved into a publicly held investment company with a diversified portfolio. Its recent financial results for Q3 FY24 indicate a rise in revenue from operations to Rs 30.61 crore, showcasing its resilience and growth.
While Tata Investment’s journey from Rs 300 to Rs 8,000 has been extraordinary, investors should exercise caution and consider professional advice before making any investment decisions.
