Promoter holding in 15 Tata companies valued at $100 billion; Ambani family's wealth at $53 billion

The aggregate value of promoter holdings in 15 top Tata group companies has crossed $100 billion (Rs 7.03 lakh crore), thanks to the recent surge in TCS and Titan stocks.

By Nevin John  
Tuesday, August 21, 2018

The aggregate value of promoter holdings in 15 top Tata group companies has crossed $100 billion (Rs 7.03 lakh crore), thanks to the recent surge in TCS and Titan stocks and the depreciation witnessed in the Indian rupee. The market capitalisation of IT bellwether gained slightly on Monday, though it couldn't overtake billionaire Mukesh Ambani's Reliance Industries (RIL). TCS value by Monday's closing stood at Rs 7.7 lakh crore, as compared to Rs 7.83 lakh crore of RIL. Titan is the second most valued company (Rs 81,889 crore) in Tata group, followed by Tata Motors (Rs 77,828 crore) and Tata Steel (Rs 67,521 crore).

RIL's share price jumped by 2.61 per cent to Rs 1235.15 on Monday and it catapulted the wealth of Ambani family to Rs 3.7 lakh crore ($53 billion). However, the promoter wealth of TCS alone stood at Rs 5.54 lakh crore ($79.21 billion). Ambanis own 47.35 per cent stake in RIL, compared to 71.92 per cent held by promoters of TCS.

In April, TCS had breached the $100 billion market capitalisation mark. However, RIL regained the top spot in July last. Last week, TCS went past RIL again, but it was short-lived as RIL bounced back on Monday. However, the fall of Indian rupee, which is at around 70 against the US dollar, has helped the Tata promoters to reach $100 billion valuation from their promoter holding in 15 companies. The Tata Trusts through the holding companies -- Tata Sons and Tata Industries -- control the promoter stake in group companies. Besides, the group companies have many cross-holdings.

It was mostly the personal wealth of Tata founders that was transferred to form Tata Trusts -- which include Sir Dorabji Tata Trust, Sir Ratan Tata Trust and Allied Trusts. Tata Trusts controls 66 per cent of the shares of Tata Sons, the principal investment holding company and the promoter of Tata companies. The Pallonji Mistry family also holds 18 per cent stake in Tata Sons.

The aggregate market capitalisation of 15 Tata group companies comes to Rs 11.32 lakh crore. The one next to Tatas is HDFC -- which includes HDFC Ltd, HDFC Bank, HDFC Asset Management Company and HDFC Standard Life Insurance Company -- and its aggregate valuation comes close to Rs 10 lakh crore. In the market valuation game, Bajaj Group companies come fourth after RIL. The market value of RIL started riding high especially after the launch of digital service business, Reliance Jio, in September 2016.

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