Mumbai, Sept. 14: Tata Sons is tightening its grip on Tata Investment Corporation Ltd (TICL). It will make an open offer to acquire little over 29 per cent of TICL for Rs 600 per share.
Tata Sons and other Tata companies hold 60.61 per cent of the company’s equity. The open offer will be made by Tata Sons alone to acquire additional equity shares of up to 29.29 per cent from public shareholders who currently hold 39.39 per cent, TICL informed stock exchanges today. The company added this would not result in delisting of its shares from the stock exchange.
The offer price of Rs 600 per TICL share represents a premium of 33.33 per cent over the closing price of Rs 450 on the Bombay Stock Exchange. According to TICL, the price is also more than the minimum price of Rs 439 computed on the basis of a Sebi pricing formula.
TICL was promoted by Tata Sons in 1937. TICL, initially named The Investment Corporation of India Limited, was set up to assist in the promotion of new companies and projects and also to act as an investment company. It was a closely held company till 1959, when it listed on the BSE.
TICL together with Tata Sons is a promoter of Tata Mutual Fund. TICL is also the principal shareholder of Tata Securities — a company engaged in the distribution of mutual funds and other investment related securities. It is a non-banking financial company registered with the Reserve Bank of India under the investment company category.
Its activities include making long-term investments in equity shares and other securities of companies. The major sources of income for the company consist of dividend income and profits from investments. As on March 31, 2006, it built up a portfolio of investments that had a book value of over Rs 600 crore with a market value of over Rs 2,000 crore.