Ratan Tata earns 23,000% returns on Upstox investment, sells 5% stake
Ratan Tata bought a 1.33 percent stake in Upstox in 2016. He gained 10x returns on his original investment as realized capital
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Online discount broking firm Upstox has delivered 23,000% returns to Ratan Tata on his original capital investment, based on the last round of the company's valuation of $3.5 billion.
The former chairman of the Tata Group bought a 1.33 percent stake in Upstox in 2016. He gained 10x returns on his original investment as realized capital.
Upstox also concluded a 5 percent share buyback of Ratan Tata. The 86-year-old industrialist currently holds 95 percent of his stake in the New Delhi-based company.
Upstox co-founder Kavitha Subramanian expressed gratitude to Ratan Tata for showing confidence in the company.
"We are particularly honoured that Mr. Tata, a respected and iconic figure in India, has been such a key part of our journey. His early belief in our vision was a huge vote of confidence, and his challenge to us was both simple and profound: ‘How can we offer the same top-quality wealth advice to the everyday Indian that wealthy individuals receive?’ This question has been at the heart of everything we do at Upstox," Subramanian said.
According to Tracxn data, the online broking firm has 13 institutional investors including Kalaari Capital, Tiger Global Management, and Xceed. Tiger Global Management is the largest institutional investor in Upstox. Ratan N Tata and 11 others are Angel Investors in Upstox.
Upstox reported a net profit of Rs 25 crore in FY23 and its gross revenue crossed Rs 1,000 crore. Upstox was founded in 2009 as RKSV Securities by Ravi Kumar, Raghu Kumar, Shrini Viswanath, and Kavitha Subramanian.
