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* TATA Investment Corp Ltd. was promoted by Tata Sons Ltd. in 1937 under the name of The Investment Corporation of India Ltd. The name was then changed to the current one in 1995. TATAINVEST is an investment company with a diversified portfolio of companies largely comprising of Tata Group’s high-dividend yielding companies. As of quarter ending 30th Sept. 2024, Tata Sons Ltd. holds 68.5% stake in TATAINVEST.

* TATATINVEST holds notable stake in Tata Group’s companies like Tata Chemicals Ltd. (5.97%), Tata Consumer Products Ltd. (4.65%), Trent Ltd. (4.28%), Voltas Ltd. (3.01%), Titan Co. Ltd. (2.01%), Tata Elxsi Ltd. (1.69%), The Indian Hotels Co. Ltd. (1.26%), Tata Steel Ltd. (0.34%), Tata Motors Ltd. (0.3%), Tata Power Co. Ltd. (0.21%), Tata Consultancy Services Ltd. (0.03%). It also has stake in some of Tata Group’s unlisted entities such as Tata Autocomp Systems Ltd., Tata Capital Ltd., Tata Industries Ltd., Tata Services Ltd., Tata Sons Pvt. Ltd., etc.

* Tata Sons Ltd. was declared by RBI as an upper-layer NBFC and which makes it mandatory to get listed in primary markets by September 2025. While the group had requested the central banker to exempt it from the mandatory listing, recent reports suggests RBI to likely have turned down the plea.

* While there exists few other options such as repayment of borrowing or transferring the holding to Tata Capital or any other entity to get deregistered as core investment co. and upper-layer NBFC, any developments on the group’s decision related to listing process can act as trigger for the stock price.

* TATAINVEST also holds stake in several other Non-Tata Group companies such as PFC Ltd. REC Ltd., Sun Pharma. Ind. Ltd., Infosys Ltd., GAIL Ltd., Reliance Industries Ltd., etc. It also holds stake in unlisted companies such as National Stock Exchange of India Ltd.

* Main source of income for the company is dividend income, interest income and net gain on fair value changes. Revenue from operations grew at 38% YoY to `3,831mn while Profit after tax was up 53% YoY `3,849mn.

* In-line with SEBI’s initiative to improve price discovery of Investment Companies (ICs) and Investment Holding Companies (IHCs), special call auction is set to be conducted on 28th October. This would certainly act as sentiment booster for investors and will unlock value for holding companies with better liquidity.

* While any positive development on listing of Tata Sons Ltd. can be a good trigger for the company, fair value change in portfolio of listed as well as unlisted companies will drive its earnings performance, thus we include TATAINVEST at CMP `6,524.4.

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