20X in 20 years: How Ratan Tata helped Indian retail investors make this return from a Tata company shares

This year marks the 20th year of listing of TCS shares. Those who had applied for TCS shares and got allotted have seen their wealth become 20 times in 20 years, if they have held on to the shares. And they have to thank former Tata group chief Ratan Tata for that. TCS had issued shares at Rs 850 to investors in its IPO in 2004. And since then, it has issued 1:1 bonus shares twice: First time in 2009 and later in 2018. So if an investor got 1 share allotted in TCS IPO, he holds 4 shares after two bonus issuance. Currently, TCS shares are trading around Rs 4200 in Mumbai market, making investors 20 times wealthier in 20 years.

After the death of Ratan Tata last month, former TCS CEO S. Ramadorai , who was at the helm when the company went public, shared how Ratan Tata made the wealth creation possible for Indian retail investors. Ratan Tata had served as the chairman of Tata Group from 1991 to 2012 and later in interim interim chairman from October 2016 to February 2017.

Speaking to Rediff.com, Ramadorai highlighted Ratan Tata’s vision during the landmark TCS listing in 2004, emphasizing Tata's commitment to empowering retail investors across India. While many suggested international listing, Tata insisted on listing TCS exclusively within India. His focus was on ensuring that small investors, regardless of how many shares they could afford had access to TCS’s growth potential. Tata believed in setting a share price that would allow for future appreciation, rather than pricing so high that it left investors with limited gains, the former TCS CEO said.

Ratan Tata's approach was rooted in the principle of providing value to every investor, aiming to benefit citizens across all economic levels and prioritize accessibility and fairness, he said. Ratan Tata’s vision went beyond business; he was driven by a genuine desire to create value for people at all levels, including the smallest investors, Ramadorai said.

TCS IPO journey
Ramadorai and Ratan Tata had met interacted very closely during TCS IPO process, meeting a lot of people across various geographies and had travelled together on many occasions.

"He was a principled person who saw the value of touching the last man or the last woman in the chain, so that affordability was addressed. There was a passion to create value for every citizen of this country," S. Ramadorai told Rediff.com, referring to Ratan Tata.

S. Ramadorai began his journey with Tata Consultancy Services (TCS) as CEO in 1996. Over the next 13 years, he led TCS through pivotal milestones, including its 2004 public listing. Post-retirement, he continued to serve TCS as Vice Chairman until 2014, marking over four decades of dedication to the company. His leadership extended beyond TCS; he chaired several prominent companies, including the Bombay Stock Exchange, TATA Technologies, and TATA Elxsi.