Tata Investment Corporation: Unusual discount to NAV

Two observations.

1. Usually holding companies at the fag end of a bull market, near the top. That is what we have seen in the last 3 bull runs in India.

2. Assuming that Tata Invest does successfully buy a stake in UTI, there may need to be some form of corporate action to amalgamate UTI and Tata MF, because as per current rules, no holding company can own more than 10% in an MF.

Personally, I don’t think we are at the end of a bull market rally, but only time will confirm that. What is a possibility is that they are just playing catch up after their constituent stocks have run up in the recent past.