Tata Sons, the holding company for the Tata group, has successfully used the creeping acquisitions route to hike its holding in six major group companies in the financial year ended March 31, 2001.

As per the balance sheet, the total book value of the holdings in these group companies stands increased at Rs 1,946.7 crore as on March 31, 2001, as against Rs 1,660.5 crore in the previous year.

As per the annual report for the year 2000-01, Tata Sons holding in Tisco has gone up from 17.9 per cent in March 31, 2000, to 19.9 per cent in March 31, 2001. The average buying price for Tisco was Rs 117.36 per share.

In the case of Telco, the holding has gone up to 14.2 per cent from 11.5 per cent, at an average buying price of Rs 119.55 per share. In Tata Tea, the promoter has increased its holding to 15.1 per cent from 
11.8 per cent, at an average buying price of Rs 355.64 per share.

While there has been a marginal increase of 0.2 per cent in Indian Hotels Corporation, at an average buying price of Rs 233, the Tata Sons holding in Tata Investment Corporation stands increased by 2.2 per cent at 
31.8 per cent. The average buying price for hiking stake in Tata Investment Corporation was Rs 101.55 per share.

The only exception is Tata Elxi, where the promoter holding in a single year has gone up by 17.3 per cent to 19.2 per cent, at an average buying price of Rs 97.01. According to company officials, this has been on account of inter-group transfers.

The average cost of acquisition in Tisco and Telco has dropped to Rs 150 per share and Rs 149.7 per share respectively, as on March 31, 2001, as against Rs 153.5 and Rs 156.5 last year. For Tata Tea, the average cost of acquisition is up from Rs 175.9 to Rs 215.1 during the fiscal. In the case of Tata Elxi, Tata Investment Corporation and Indian Hotels, the average cost of acquisition has gone up to Rs 93.8, Rs 50.8 and Rs 70.4 respectively from Rs 64.8, Rs 47 and Rs 67.7 last This year too, Tata Sons has adopted the route of creeping acquisitions to hike its holding in group companies. The move assumes significance as Sebi has decided to raise the creeping acquisitions limit to 10 per cent from the earlier limit of 5 per cent.