Ratan Tata: Ratan Tata's company won the lottery, made a profit of 23000%; then why did he sell the stake?

Ratan Tata Share in Upstox: Ratan Tata, who bought a stake in Upstox in 2016, has now sold his 5 percent stake. Tata has sold these shares in a buy back deal, on which he has made a profit of about 10 times.

Upstox stock Broking: Ratan Tata, who is involved in businesses ranging from salt to airplanes, has reduced his stake in stock broking startup Upstox by 5 percent. He has benefited tremendously by selling this stake. Ratan Tata has sold his share to Mumbai-based stock broking startup Upstox in a buyback deal. In return, Tata has got a return of about 10 times. Talking in percentage, he has got a tremendous return of 23,000% on his investment. Despite this sale, Ratan Tata still has 95% of his original stake in the company.

Initially bought 1.33% stake

Tata's journey with Upstox began in 2016, when he bought a 1.33% stake in it. According to Tracxn data, his stake was reduced to 0.9% after an equity round in 2022. The recent buyback was completed at a valuation of $3.5 billion (about Rs 30,000 crore), which Upstox achieved in 2022.

What did the co-founder say about this deal?

Upstox co-founder Kavitha Subramanian thanked Ratan Tata. She said, 'It is a matter of pride for us that Ratan Tata, a respected and eminent person of the country, has been an important part of our journey. His trust in the beginning was a big thing for us. Upstox created wealth on the basis of his trust. Our target is to give strong returns to all investors. We are proud to say that today we can return a part of Ratan Tata's investment.

About the company

Upstox has grown its business rapidly. In FY23, the company reported a net profit of Rs 25 crore. The company's gross revenue has exceeded Rs 1,000 crore. According to the National Stock Exchange (NSE), the company has 2.7 million active customers. Subramanian said that Ratan Tata's decision to retain most of his stake shows his continued belief in the mission of Upstox.