Tata Invest Corp - Undervalued

Tata Investment Corporation and Indian Companies Registered under The companies Act,1956 from house of TATA's

Tata Investment Corporation Limited (TICL) was promoted by Tata Sons in
1937. TCIL, initially named The Investment Corporation of India
Limited, was set up partly to assist in the promotion of new companies
and projects, and partly to act as an investment company.

The company remained a closely held company till 1959, when it became
one of the few publicly held investment companies listed on the
Mumbai's stock exchange. During the 1960s and 1970s, the company's
activities underwent a gradual transformation from assisting in the
establishment of new ventures to acting purely as an investment company
with a diversified portfolio of investments. Tata Sons together with
other Tata companies today hold over 60 per cent of the paid up capital
of the company as on March 31, 2005, with the balance being held by the

TICL together with Tata Sons is a promoter of the Tata Mutual Fund.
TICL is also the principal shareholder of Tata Securities - a company
engaged in the distribution of mutual funds and other investment
related securities.

TICL had been rated by CRISIL since 1994, and has been assigned their
highest rating of 'FAAA', representing highest safety in payment of
interest and principal amount.

Areas of business

TICL is a non-banking financial company (NBFC) registered with the
Reserve Bank of India under the 'Investment Company' category.

The company's activities comprise primarily of investing in long-term
investments in equity shares and other securities of companies in a
wide range of industries. The major sources of income for the company
consist of dividend income and profit on sale of investments.

Over the years, through gradual and judicious portfolio management,
Tata Investment has built up a portfolio of investments which had a
book value of over Rs 500 crore with a market value of about Rs 1500
crore as on March 31, 2005 spread over 230 companies in various
industries. The company's paid-up capital is Rs 23 crore with reserves
of Rs 462 crores.

at CMP of Rs 328 the Market Capitalisation is Rs. 1123 crore as against

the Market Value of Investment worth Rs. 1870 crore (31/3/2006) owned
in the group company by the company.

The company has recently issued bonus shares in the ratio of 1:2 and
current Pd up share capital is Rs. 34.5 Crore of Rs 10 each

Tata's has announced picking up of additional 7% stake in Tata Steel.
If they are to retain the ownership of other companies they are sure to

pick up more in this company. I hold 100 shares

Similar threads