Tata's NBFC Drops 34% In 8 Days; Tata Power-To-Tata Sons, 6 Group's Companies Lose Up To Rs 11,369 Crore

As the noises of the much-awaited IPO TATA Sons dulled down, bears gripped the majority of Tata Group stocks for eight consecutive trading sessions. But there is one investment company of the multi-billion dollar conglomerate, which started as investors' favourite darling in 2024, that has not seen any buyers since March 11th. After skyrocketing by 130%, Tata Investment Corporation has taken the hardest hit. And because of bears in Tata Investment, a list of six Tata companies lost massive money.

Tata Investment Share Price:

Tata Investment shares have seen some eye-bulging takeoffs and some extremely volatile nosedives. The current situation is in red.

This NBFC stock has touched back-to-back 5% lower circuits from March 11th to 20th. The stock has plummeted by a massive Rs 3,279.65 or 33.66% on BSE.

During these 8 trading sessions, six Tata Group companies lost massively. They are Tata Steel, Tata Power, Tata Consumer Products, Trent, and not to forget the biggest promoter is the reason for chaos, Tata Sons.

Here's how much these six companies lost in six days:

The last time Tata Investment was in green was on March 7th, when it rallied to freeze at its new all-time high of Rs 9,756.85 apiece on BSE. Since then Tata Investment has locked 5% lower circuits, meaning that there were several sellers in the stock but no buyers.

Tata Power:

As of December 31, 2023, Tata Power holds 7,94,416 equity shares or 1.57% of Tata Investment, as per BSE data. On the all-time high of Rs 9,756.85 on March 7th, Tata Power's shareholding was valued at Rs 774.11 crore.

But after March 20th, the shareholding value was at Rs 513.57 crore. That's a Rs 260.54 crore drop in Tata Power's shareholding value in Tata Investment between March 11-20.

Tata Chemicals:

Tata's salt and soda ash maker, Tata Chemicals currently holds up to 4,41,015 equity shares or 0.87%. On March 7th, the shareholding was valued at Rs 429.74 crore, while after March 20th market hours, the holding was valued at Rs 144.64 crore.

Tata Chemicals lost about Rs 144.64 crore in Tata Investment due to the stock's sharp downfall.

Tata Steel:

Tata Group's steel giant's shareholding in Tata Investment is around 2,28,015 equity shares or 0.45%. On March 7, Tata Steel's shareholding was valued at Rs 222.19 crore in Tata Investment.

Now, the shareholding value is around Rs 147.41 crore as of March 20. This will be a decline of Rs 74.78 crore in Tata Steel's investment in the NBFC.

Tata Consumer Products:

Further, the FMCG giant of Tata Group holds 1,46,872 equity shares or 0.29% in Tata Investment. This shareholding was valued at Rs 143.12 crore on March 7th. However, at the current price level, the shareholding is valued at Rs 94.94 crore.

Accordingly, Tata Consumer lost about Rs 48.16 crore in Tata Investment during these 8 sessions.

Trent Ltd:

Trent holds Tata Investment in two ways. Firstly, the company's shareholding is around 31,793 equity shares or 0.06% in the NBFC. While Trent-backed subsidiary Trent Brands also holds 16,330 equity shares or 0.03% in the NBFC. Together, Trent holds 48,123 equity shares or 0.09% in Tata Investment, which is the lowest Tata holding in the company.

On March 7th, at Rs 9,744.40, Trent's overall 8,123 equity shares were valued at Rs 46.89 crore. But has dropped by Rs 15.78 crore, to Rs 31.11 crore valuation in Tata Investment as of March 20th.

Tata Sons:

Tata Sons, the holding company of Tata Group is the major shareholding of many Tata companies including Tata Investment as well.

Tata Sons has lost the most in Tata Investment's current selling spree. As of December 31, 2023, Tata Sons holds about 3,46,64,663 equity shares or 68.51% in the NBFC.

On March 7th, Tata Sons holding valued at Rs 33,778.63 crore in the NBFC. But that has tumbled to Rs 22,409.83 crore as of March 20th, recording a staggering drop of Rs 11,368.79 crore in 8 sessions.

Tata Investments Shares Rise And Fall:

2024 kickstarted with a bang for Tata Group stocks, especially for Tata Investment which recorded an extraordinary bull run, more than doubling from the levels that it ended 2023 with.

At the start of 2024, Tata Investment's share price stood at Rs 4,258.70 apiece on the NSE. But scaled up with periodic excessive buying sprees on numerous occasions. Tata Investment's month-on-month gains were robust with a surge of 32.33% in January 2024, followed by a 26% upside in February.

The reason behind the strong bull trend was due to buzz related to Tata Sons that the Tata Group's holding mega giant could list within the next 1 and half years.

The buzz that Tata Sons IPO was not far away led to a massive rally in all Tata Group stocks so much so that it bagged over Rs 1 lakh crore market value in the first week of March. Tata Investment was in a similar symphony.

From January 1 to March 7, 2024, Tata Investment led a massive 58 billion dollar rally, with the majority of it covered in the first week of March. During this period, Tata Investment had gained by over 129% and emerged as an outperformer in the Nifty 500 index.

However, Tata stocks came under pressure after reports said that Tata Sons may be looking to adopt other options to avoid public listing. Also, this week, Tata Sons offloaded over 2 crore equity shares in TCS.

Tata Investment funds a diversified portfolio of quoted and unquoted securities of companies, including Tata Companies, which are engaged in various businesses with a history of strong operating and financial performance.