Tata Motors share price hits 52-week high as Sebi approves Tata Tech IPO | Mint – Mint

Tata Motors share price gained at open on June 28 after Tata Technologies, a subsidiary of automobile major Tata Motors, received an approval from Sebi to raise funds through an initial public offering (IPO).
Tata Motors share price started at 579.95 – up about a percent or around 5. The stock could not sustain at that level and pared early gains to trade around 576.20, up 3.15, or 0.55%. In afternoon trade, Tata Motors share price hit a 52-week high 
The Tata Motors stock has been buzzing lately as investors anticipate a blockbuster issue in Tata Tech IPO. As per the Draft Red Herring Prospectus (DRHP), which was filed in March, Tata Technologies IPO is fully an offer for sale (OFS) issue where Tata Motors will sell up to 9.57 crore equity shares, approximately 23.60% of the company’s paid-up share capital.
Out of the 23% sale, Tata Motors will offload 8.11 crore shares, or a 20% stake, in the company. Among other shareholders, Alpha TC Holdings plans to sell up to 97.16 lakh shares (2.40%) and Tata Capital Growth Fund I will offload up to 48.58 lakh equity shares (1.20%).
The size of the IPO and the price band have not been disclosed yet.
Stock market experts said that Tata Technologies IPO contains shareholding of Tata Motors and the auto major is offering its shares for sale in this public issue, which is 100 per cent offer for sale (OFS). This means, net proceeds of Tata Technologies IPO will strengthen the balance sheet of Tata Motors instead of Tata Technologies. They said that Tata Motors had acquired Tata Technologies shares at a price of 7.40 apiece (as mentioned in the DRHP). So, market is expecting huge monetary benefit for Tata Motors from this upcoming IPO of Tata Technologies.
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