TATA GROUP OVERTOOK THE CENTRAL GOVERNMENT TO BECOME THE LARGEST PROMOTER OF LISTED COMPANIES
| TATA GROUP OVERTOOK THE CENTRAL GOVERNMENT TO BECOME THE LARGEST PROMOTER OF LISTED COMPANIES |
MUMBAI – In 2020, Tata group of companies become the largest promoter of the listed companies after suppressing the central government’s largest promoter of the company in the stock exchange for the equity market at the end of the tubular year. For the last 20 years, the central government is the largest promoter of the listed companies.
Listed companies are the companies whose shares are sold and bought on the stock exchange market. The development comes due to the back of declining market capitalization of stake-owned companies’ shares and the rising stake of Tata sons.
Tata group Company shares rose by 34.7 percent on the annual basis worth 9.28 crore which is slightly larger than the central share in PSU worth 9.24 crore at the end of 2020 which is reduced by 19.7 percent from the year 2019.
A market valuation is the sum of the total share in the market multiplied by the current share price. The market valuation of the share-owned central government in PSU is 65% higher than the market value of the share owned by the Tata group of companies at the end of 2019. In 2015 market value of central shares in PSU are two and a half percent higher than TATA Groups.
In 2020 market valuation of TATA Group shares are worth 15.6 crore which is higher than 11.6 lakh crore in 2019 and compared to the central government shares market valuation of 15.3 crore in 2020 and 18.6 crores in 2018.
REASON:
Why did the government share price decreases the central government sold its share of PSU?
The BSE PSU index hit 52 weeks high on January 2 in 2020, much higher as compared to Punjab national bank, corporation of India, oil India, and oil and natural gas corporation of India which have fallen between 27 percent and 47%.
Government earnings from oil and gas PSU have been reduced Punjab national bank stock price has been reduced by 50 % and shares of state bank of India reduced by 19 % in 2020. Shares of major companies like ONGC AND Indian oil corporations are reduced by 27 percent in 2020.
Reason for Tata’s growth
- Tata company holds 75% of the share in Tata Consultancy Services whose market cap is grown by 35 % in 2020.
- Tata sponsors the second-largest company in terms of market capitalization.
- Tata consumer products share price increased by 85% in 2020.
- In the last 20 years, it was the first time that the government of India is no longer the largest promoter of the listed company because they are replaced by the TATA Group of companies.