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Q.

Tata Sons will increase their stake in five Tata Companies---news. Will it make the fundamentals of these companies much stronger? Your views?

Tags: money, companies, sons
Asked by Good Citizen, 24 Aug '12 03:16 pm
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Answers (2)

 
1.

It has been in the news since last year and they have been doing it slowly. With respect to some companies, their holdings are pretty low where as in some selected companies, they do have majority holding. I don't really understand why they have to increase their holdings in majority held companies and how it helps in expansion or growth because in any case, they have the voting rights to carry through any decision. With respect tot he other companies where holdings are low, I think it would be prudent to increase their holdings, not only to have a greater say but also ensure no one makes a run for these companies any time in future. And of course, with valuations and price so low, probably this is the best time to go for it before any real upswing takes place, thus saving cost to themselves.
Answered by Omega, 24 Aug '12 10:03 pm

 
  
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2.

It lukz 2 b a smart move!!!!
Answered by tarannum, 24 Aug '12 03:29 pm

 
  
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