Tata Investment Corporation share price skyrocketed over 25 percent in two sessions in a row to hit a 5-month high after Tata Sons reportedly repaid more than Rs 20,000-crore debt.
Tata Investment stock zoomed to the day's high of Rs 8,074.25 on the National Stock Exchange (NSE) on August 28, rising 9.33 percent. At about 12 PM, the stock was quoting at Rs 7,686 on the NSE, rising 4.07 percent.
The counter is trading higher than 5 - 200 day moving averages. The scrip delivered multibagger returns in the last 365 days, rising a whopping 224.52 percent on the BSE. The stock has given stellar returns in the last three years, zooming 519.36 percent, as per BSE data.
The company is primarily engaged in the business of investment in listed and unlisted equity shares, debt instruments and mutual funds of Tata companies in a wide range of industries. The company is a NBFC registered with the RBI under the category of Investment Company.
The Reserve Bank of India (RBI) classified Tata Sons as an NBFC-Upper Layer (NBFC-UL) in September 2022. An NBFC-UL must be publicly listed within three years of being classified in this category, following RBI requirements. Tata Sons raises capital from banks and markets to invest in its group companies, including flagship Tata Consultancy Services (TCS), Tata Motors, and Tata Steel.
However, after significantly reducing its promoter risk profile through debt repayment, Tata Sons is no longer required to list its shares and has applied to surrender its registration certificate to the RBI, as per report on Economic Times.
The broader rally was seen in other group companies as well with TCS share price rising nearly 1 percent. However, the broader IT rally was also supported by the Nvidia quarter results announcement after the bell in US markets today evening.
Tata-backed multibagger apparel stock Trent Ltd is also trading over Rs 7,000 mark, rising 3.24 percent.
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