TATA sons have emerged as the largest promoter of companies listed at the end of 2020. The TATA sons have replaced the central government as the largest promoter at the end of the year 2020 for the equity market which saw the benchmark indices hit record lows and highs.
This is the first time in two decades where the central government had lost the title of largest promoters. . The development came on the back of declining market capitalization on state-owned companies.
Tata sons stake in the listed companies of the conglomerate rose 34.4 percent on annual basis to ₹ 9.28 lakh crore and in comparison to centers government stake in public sectors undertaking stood at ₹ 9.24 lakh crore at the end of December 2020, which is 19.7 percent lower compared to last year period, the daily reported.
The market valuation of the central government’s stakes in public sector undertaking at the end of 2019 was almost 67 percent high than TATA sons stakeholdings in its group companies.in the year 2015 march central government stake in public sector undertaking was two and a half times TATA sons holdings in its companies. At the end of 2020, the total market valuation of TATA group companies was ₹ 15.6 lakh crore as compared to ₹ 11.6 lakh crore in 2019. The market valuation of the listed public sector undertaking of 2019 stood at ₹ 15.3 lakh crore and ₹18.6 lakh crore in the year 2018.
On the account of institutional focus to Environmental, social and corporate governance (ESG) investing, frequent sale by the government, steep hit to earning of gas and oil companies due to Covid-19 and due to rising od NPAs in public sector banks, The public sector undertaking stocks goes up to 48 percent in the last one year even as benchmark indices hit fresh highs.
The Bombay stoke exchange PSU index had hit its 52 weeks high on January 2, 2020. Among individual stocks. Canara Bank, Union Bank of India, Punjab national bank, Bank of Baroda, coal India, container corporation of India, Bank of India, Indian oil corporation, oil & Natural Gas Corporation, and Oil India have fallen around 27 percent and 48 percent.