Tata, HDFC groups in race to cross $200 billion market capitalisation

The aggregate market capitalisation (MCap) of 18 major Tata group companies inches close to $200 billion marks for the first time, while banking and financing giant HDFC group is at a close second position in the race. According to the closing share price on November 27, the total MCap of 18 Tata companies stood at  Rs 14,50,502 crore ($196.11 billion), thanks to the recent spike in share prices of Tata Consultancy Services (TCS), Titan, Tata Consumer Products among others. With this, the total value of promoter holding has reached Rs 9,26,472 crore ($125.26 billion). Tata Trusts control the group companies through the holding company Tata Sons.

The four listed companies of HDFC group jointly enjoy MCap of Rs 13,84,118 crore ($187.14 billion). Market experts predict HDFC group companies scale up value faster as Bank Nifty has gained momentum lately in November.

Mukesh Ambani-controlled Reliance Industries (RIL) was the first company to reach the $200 billion MCap in September. However, RIL fell almost 17 per cent since it touched the peak. RIL and its listed subsidiary companies are jointly valued in the market at Rs 12,38,467 crore ($167.45 billion). The total value of promoter holding stood at Rs 6,28,819 crore ($85 billion) - 32 per cent lower compared to the value of promoter holding in Tata group. RIL is the major contributor to Ambani's wealth with a MCap Rs 12,23,417 crore, which has more than doubled in this financial year, thanks to large scale fundraising in Jio Platforms and Reliance Retail Ventures through stake sales.

Another Indian business house, which has seen a fast appreciation of share prices of its group companies in the recent past, is Adani. The share price of Adani Green Energy has skyrocketed over 600 per cent since April this year. Adani Gas's share price jumped over 300 per cent in this period. Adani Group, which has six major listed companies, has a total MCap of Rs 3,97,459 crore. The total value of promoter holding jumped to Rs 2,88,303 crore.

However, the Bajajs are still ahead of Adanis. Veteran industrialist Rahul Bajaj headed Bajaj group's top six companies have a combined MCap of Rs 5,67,923 crore. The negative sentiments against the banking and financing industry, especially the fear of loan defaults and non-performing assets (NPAs), had hurt the financing businesses of Bajaj as well. But the situation is changing and Bajaj Finance's share price went back to the peaks in the last two weeks of ride. The total value of promoter holding in Bajaj group stood at Rs 3,21,486 crore, higher than Adanis.

The other major companies in the top packing order with substantial MCap are FMCG major Hindustan Unilever (Rs 5,02,147 crore) and IT firm Infosys (Rs 4,68,779 crore).

In the Tata group, the companies except TCS and Titan were facing periodic exit of investors in the recent past. However, the situation is changing with the asset optimisation strategy of chairman N Chandrasekaran and his debt reduction plans.

TCS is the most valued company under Tata fold with a MCap of Rs 10,05,320 crore as on Friday. Titan is at the second position with Rs 1,20,548 crore, followed by Tata Steel (Rs 66,215 crore), Tata Motors (Rs 55,679 crore) and Tata Consumer Products (Rs 49,672 crore). Tata Communications, Voltas, Trent and Tata Power are the other major value creators in the group.

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