This means that during the last 14 months Tata Sons has hiked its stake by six per cent by acquiring 22,066,312 shares for a consideration of around 247 crore. This is on the basis of an average price of Rs 112 during the period. The total number of shares Tisco has is 367,771,880.

Confirming the stake hike, the Tata Steel managing director Jamshed J.Irani said the company has bought the shares from the market through the creeping acquisition route. ``We are not planning any buyback of shares and any hike in promoters stake will be through the creeping acquisition route,'' he clarified.

Tata Steel is one among the few cash rich companies in the Rs 35,000 crore Tata group with a cash reserve of around Rs 4,600 crore.

According to market sources, the Tata steel scrip has been trading between Rs 125-Rs 150 during the past two months. During the market crash in April, it had crashed to a low of Rs 112.

According to 1999-2000 balance sheet, while Unit Trust of India (UTI) holds 7.83 per cent in Tata Steel, Life Insurance Corporation of India (LIC) holds 13.02 per cent, other financial institutions 6.77 per cent, foreign institutional Investors 3.97 per cent and remaining 36.72 per cent is with the public.

As per the balance sheet, UTI has reduced its stake to 7.83 per cent by March 2000 from the previous 16.42 per cent in 1999 and Foreign Institutional Investors (FIIs) have hiked their stake to 3.97 per cent from 1.03 per cent.

Tatas have been increasing their stake in Tata Steel from 1999. The promoters raised their stake by 4.5 per cent to 24.5 per cent during the fiscal ended March 2000. According to the SEBI guidelines on creeping acquisition, the company can increase their stake up to five per cent every year.

The promoters had been hiking their stake in its various flagship companies including Telco, Tata Power and Tata Tea. Tata Sons had made it clear that it would like to hold a minimum of 26 per cent in all its flagship companies to ward off threat from hostile takeovers.

After the merger of three power companies--Andhra Valley, Tata Power, Tata Hydroelectric, Tatas had increased their stake to around 25 per cent. The merged entity--Tata Power- -has a cash reserve of around Rs 4,600 crore.