After his bitter experience with Subhiksha Retail, Azim Premji, the billionaire chairman of India’s third largest information technology services company, is now playing it safe by investing in well-known brands.
Premji, in his personal capacity, is now understood to have invested Rs 75 crore (Rs 750 million) in the preference shares of Tata Capital.
The investments in these ‘non-voting preference shares’ have been made through Premji’s private investment arm, PremjiInvest and the Azim Premji Trust which finances his not-for-profit activities.
On being asked, a senior official of Azim Premji Trust declined to comment. An email query sent to Prakash Parthasarathy, the chief investment officer at PremjiInvest did not evoke any reply.
Sources, however, said “it was a routine investment by Premji and his family investment business, which he continues to do”.
In July last year, Tata Capital Financial Services, the financial services arm of the Tata group had gone for a private placement of one million compulsorily redeemable preference shares.
These shares, of face value Rs 1,000 each, were being placed at a premium of Rs 500 a share.
According to Tata Capital’s annual report, Azim Hasham Premji and Azim Premji Trust jointly own 24.2 per cent of the preference shares as on
March 31. PremjiInvest is a one billion investment fund owned by Premji. Among others, it has invested in companies and organisations such as Manipal Education, National Stock Exchange and Carnation Auto.
After its investment in Subhiksha Retail went awry, PremjiInvest is now engaged in a protracted legal battle.
On the other hand, Azim Premji Trust is an irrevocable trust which finances various activities of the Azim Premji Foundation.
In February this year, Premji had transferred 295.5 million equity shares, representing 12 per cent of the total shares of Wipro Ltd, to the trust, worth Rs 12,300 crore (Rs 123 billion).
Image: Azim Premji
