Mumbai, Jan 2 | At a time when Indian equity market rallied to record high levels, Tata Sons emerged as the largest promoter of listed companies in India.
It overtook the Centre, in terms of promoter of listed companies, by the end of 2020.
Notably, the Central government has ceased to be the largest promoter of listed entities after 20 years.
The development comes both on the back of rising stake of Tata Sons in its listed entities and declining market capitalisation of state-run companies, media reports said.
Tata Sons’ stake in the conglomerate’s listed companies has increased over 34 per cent in the past one year to Rs 9.28 lakh crore, which is higher than the Government of India’s stake in public sector undertakings, Rs 9.24 lakh crore, reports said.
Centre’s stake in the PSUs declined nearly 20 per cent in the past one year.
At the end of 2020, the total market valuation of Tata group companies was Rs 15.6 lakh crore, as opposed to Rs 11.6 lakh crore in 2019. While, that of listed state-run companies by the end of 2020 stood at Rs 15.3 lakh crore, falling from Rs 18.6 lakh crore the year before.
Amid stake sales by the government, severe impact on earnings of oil and gas PSUs and stress in public sector banks shares of PSUs plunged in 2020.
Among the banks, shares of Punjab National Bank have declined around 50 per cent, those of State Bank of India declined around 19 per cent.
Shares of both energy major ONGC and Indian Oil Corp plunged 27 per cent in 2020.
In contrast, share price of Tata Consultancy services (TCS), the second largest company in terms of market capitalisation rose around 34 per cent during the same period.
The market capitalisation of TCS now stands near Rs 11 lakh crore. Tata Sons holds 72 per cent stake in TCS.
The share price of Tata Consumer Products rose 85 per cent in 2020.