Mumbai, Aug 10 :     Ratan Tata is finally having the last laugh. Almost four years ago, he issued a controversial edict to all Tata group companies asking them to invest in the equity of holding company Tata Sons. The reason: it was payback time for these companies which had profited by using the Tata name. Many Tata satraps had then resented the directive. Four years on, the bean counters have come up with just the sort of numbers that should make the Tata group chairman smug: the investments that the leading Tata companies had made in Tata Sons in 1995-96 have quadrupled in value since then. Among the companies to invest in the holding company's rights issue totalling Rs 300 crore were Tata Steel, Tata Engineering, Tata Chemicals and Tata Power. Ratan Tata told the extra-ordinary general meeting of Tata Electric Companies yesterday that merchant bankers value the current value of these investments in the region of Rs 1200 crore. The investments had been made in view of the funds requirement for various investments by Tata Sons and also to correct the capital structure of the group's holding company. N.A. Soonawala, a senior director, told The Telegraph that the valuation was on the basis of several appraisals done by investment bankers in the recent past. The equity capital of Tata Sons is around Rs 40 crore and 66 per cent of the stake is held by trusts. Since the group companies subscribed to its equity, Tata Sons has declared two bonus issues. As per the latest reports, Telco holds 12,375 shares of Tata Sons, while Tisco holds 12,375 shares through its wholly-owned subsidiary Kalimati investment company. Tata Power and Tata Chemicals hold 6672 and 10,237 shares respectively. The shares, which have a face value of Rs 1000, are however valued in their books at an aggregate value of Rs 231.64 crore. The holding declined to current levels after a rights issue at Rs 1 lakh per share 1995-96 in a ratio of 1:5. The Tata Sons' rights issue received an overwhelming response by mopping up Rs 300 crore. The issue was made at that time in view of the funds requirement for various investments and also to correct the capital structure. Since the charitable trusts which were the major shareholders could not buy the shares, they renounced their rights in favour of other Tata companies at a premium of Rs 25,000 per share. The issue was made in view of the funds requirement for various investments and also to correct the capital structure. Tata Sons has five operating divisions. Of these, Tata Consultancy Services (TCS) is the largest division of Tata Sons, generating over 90% of the Tata Sons' income and profits. TCS has shown sustained growth in income and profitability in the past and the continued good performance of this division is critical to Tata Sons, given the large outlay of funds required to increase investments in group companies. Given the scope for the indian software industry, which at present accounts for less than one per cent of the global information technology services industry, TCS is expected to continue to grow at past growth rates. Tata Sons has a large investment portfolio of shares in the core Tata group companies that has been increasing every year. Besides dividend income, Tata Sons has also generated income by divesting non-core holdings as well as divestments of holdings, which are above a slated strategic holding.