Tata Investment open offer at premium

Tata Sons, made an open offer at Rs 600 a share to buy up to 28.39% stake from other shareholders of the firm who presently hold 39.39%. The offer price is at a 33 % premium to Friday’s closing price of Rs 450.10. Tata Sons and other Tata group companies hold 60.61% in Tata Investment.

Net profit of Tata Investment Corporation rose 8.61% to Rs 39.59 crore on 6.01% rise in total operating income to Rs 43.57 crore in Q1 June 2007 over Q1 June 2006.

Tata Investment Corporation, which is promoted by Tata Sons, is a non banking financial company that handles a portfolio of investments and it also acts as a promoter of new companies and projects of Tata Group.

The current price of Rs 540.10 discounts Q1 June 2007 annualised EPS of Rs 45.95 by a PE multiple of 11.75.