Calcutta, Sept. 11 :    Calcutta, Sept. 11:  Tata Sons is planning to raise its stake in the group flagship, Tata Iron and Steel Company (Tisco), from 26.2 per cent to more than 40 per cent over the next three to five years through market buying. The move is aimed at fending off possible takeovers of the kind that have rocked Corporate India in recent times. A Tata Sons spokesperson said the promoters will continue to raise their holding in the steel major through purchases in the secondary market. Sebi norms allow promoters to buy up to 5 per cent of the shares in a company via the creeping acquisition route. The spokesman, however, said Tata Sons had no plan to make an open offer for shares in the steel major even though Tisco's current stock price does not show its intrinsic value. Sources say the company has been boasting of strong fundamentals despite being buffeted by an unprecedented recession. Its share, down a whopping 47 per cent from Rs 158.50 on February 13, is now languishing at Rs 84. Marketmen blame the slowdown and the market mayhem for the drubbing, while sources close to the Tatas hold 'abnormal market behaviour' responsible for the price plunge. Unlike other steel makers, Tata Steel, one of the lowest-cost producers of the metal in the world, posted a handsome net profit of Rs 553 crore on sales of Rs 7759 crore last year. More important, it had reserves (excluding revaluation reserve) of Rs 4380 crore at the end of March 2001. 'If you consider these factors, the share price of the company should be much more than what it is now,' they said. It is not clear if Tisco will like to cash in on its limp share price and announce a buyback programme. The Tatas hold 26.22 per cent of Tisco's Rs 367.97-crore paid-up capital, Tata Sons 19.86 per cent, Telco 4.68 per cent and other associates 1.68 per cent. The financial institutions and mutual funds together control 32.81 per cent while the public commands a 32.45 per cent stake. Having commissioned its new cold-rolling (CR) mill at Jamshedpur in 2000-01, sales of high-value CR products have grown leaps and bounds over the past year. The company has also completed its modernisation programme, and is ready to reap the benefits now. The country's oldest steel company in the private sector has drawn up ambitious plans for diversifying into telecom. Flushed with funds, it is on the lookout for acquisition opportunities in the telecom industry. It intends to make large investments in units that make long products -acquisitions or greenfield projects - because it expects a construction-induced rise in demand for this variety of steel. There are plans to invest over Rs 500 crore to set up a titanium project in Tamil Nadu and a ferro chrome project, either in Australia or in South Africa.