December 13, 2023

1907 -When Tata Iron and Steel Discovered the power / patriotism of Indian shareholders / investors

Tata Steel earlier named The Tata Iron and Steel Co. ( TISCO ) was formed in 1907.
The massive and costly steel plant being put up at , now named , Jamshedpur required shares to be issued to the public for financing.
The Management , initially , opened the public issue in England. The response was not encouraging.
Then they decided to try to sell their shares to Indians. 
Tatas write in their history that the response was overwhelming and unprecedented. Would be investors queued before Tata 's office in Bombay ( Mumbai ). They brought with them tiffin and stools to sit on while waiting in the line.
All the shares were sold. / lapped up.
Industrialists saw the hitherto , untapped potential of Indian investors and the Indian capital waiting for investment.
My father told us that biggest speculative share in Pre Independence times was Tata Deferred .
( Tata Steel's Deferred Share which was entitled to Dividend twice ,Ordinary Equity Dividend + a Special Exclusive Dividend. )
Brokers in the Stock Exchange Trading Ring shouted O -- DEFERRED , O--DEFERRED ---Liya - Becha, '
The massive speculative volatility embarrassed the Tata s who , ultimately , in 1953 ,converted Tata Deferred to TISCO Equity , probably , in the ratio of 1 Deferred = 6 Equity
( Tisco Equity was then Rs. 75 paid up. Much later, a 1 : 3 Bonus was declared and share holders received stickers . to be put up on the share certificates." that the face value is increased from Rs.75 to Rs 100 " )