It’s also about trust, say Tata Steel shareholders


October 22, 2006

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With Tatas acquiring Corus Group, long time shareholders of the Tata group companies see it as a vindication of their trust. Najoo E Adajania invested in Tata Steel over two decades ago as she wanted to invest in a company that would grow over the years. The 66-year-old was delighted with the news of the acquisition reminiscing the days she bought Tata Steel shares. “My husband had then just expired and I was keen on investing in a company that would assure returns. What came to my mind first was the Tata group.”

In the two decades since then, she has been rewarded with dividends, bonuses, rights shares and stock split.

Others like Edil J Katrak, have had good memories from the Tata, buying and selling the shares, but always coming back. “I inherited some shares of Tata Steel from my father who bought it in 1966,” says Katrak. “But I have sold some of the shares when the market was booming. Then I bought some now and am happy that I did.”

A blue chip company share is an investment and never meant to be sold and Tatas all the more which you can also pass to your children as inheritance that’s what Cyrus Khambatta, Assistant VP, CDSL, thinks.

“My Tata shares were given to me by Dad who bought it in the 50s and I am sure he bought it for the Parsi factor backed by the fact that the management is sound. I have benefited and I will pass them on to my daughter.” A shareholder goes by the `integrity’ of a company and that’s one of the chief reasons for holding on the shares for a considerable period of time, says Hitesh Agarwal, Senior Research Analyst, Angel Broking. “I have studied the steel sector over the years and have found that where integrity is concerned, the Tata management has always scored very high.”

The company’s graph would have soared if it was aggressive and not been as `transparent’ as it is, feels Agarwal. “But in the past few years, the group has become aggressive and given the fact that it is one of the cheapest steel making company in the world, coupled with its ranking in the top five with this acquisition, the shareholders can only benefit in the long term,” says Agarwal. Well, like they say: once a Tata loyalist, always one.

Sulekha Nair for the Financial Express