Tata Technologies IPO: GMP falls, check expected date, price band, why you should apply to Tata Group's 1st IPO in nearly 20 years – Business Today

After SEBI’s nod for the launch of initial public offering (IPO) Tata Technologies Limited, Tata group is set to launch an IPO after a gap of  19 years. This will be the first IPO from the group since Tata Consultancy Services (TCS), which got listed on NSE, and BSE in 2004.
Tata Technologies  IPO is purely an offer for sale (OFS). Its shareholders will reportedly offload up to 9.57 crore units representing 23.60% of its paid-up share capital. Upon listing, Tata Technologies will join the other 28 listed Tata group companies. Tata Motors holds a 74.69% stake in Tata Technologies. Under the OFS, Tata Motors will offload 8.11 crore shares or a 20% stake in the company through the IPO.
According to market experts, a company proposing to list its shares on Indian bourses take 30-45 days in finalising the price band and other formalities. So, Tata Technologies IPO is expected to be open for subscription by the end of August or in the first quarter of September 2023.
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Even though Tata Technologies IPO price band is yet to get announced by the company, market experts believe that it may be priced around Rs 268. Comparing Tata Technologies, with Cyient, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio said, “We have valued Tata Technologies at a 10% discount to the multiple assigned to Cyient at 21.2x TTM EPS to arrive at an intrinsic value of Rs 268 per share. Which results in market capitalization of Tata Technologies of Rs 10,852 crore.”
With market expectations for an impending IPO, there is a buzz surrounding the probable price band, which depends upon the company’s assessment. Tata Technologies shares are available in the unlisted stock market. “The unlisted shares of Tata Technologies are currently scaling new heights in the unlisted market, commanding a remarkable value of Rs 1,050 per share. This stellar performance has translated into an impressive 10x return over the span of three years,” Abhay Doshi, Co-Founder of UnlistedArena.com told BT earlier.
“Drawing insights from its closely listed peer, KPIT Tech, which has been exhibiting robust performance and trades at approximately ~68x P/E, Tata Technologies’ unlisted shares are also at similar valuations in the unlisted market. Considering the investor-friendly reputation of the Tata group, it is possible that the ‘IPO’s price band may be set at a level lower than the current rates in the unlisted market keeping enough on the table for investors,” Abhay Doshi told Business Today.
As we are in the month of August, shares of Tata Technologies Ltd have become volatile in unlisted stock market. According to grey market observers, Tata Technologies shares are available at a premium of Rs 84 in the grey market today, which is Rs 16 lower than the previous week’s GMP (grey market premium) of Rs 100.
According to experts, these are the top reasons to consider investing in Tata Technologies IPO Tata name carries years of trust and legacy.The mid-cap company is a global engineering company that primarily offers services and technology solutions to leading OEMs and their tier-I suppliers.Tata Technologies is one of the leading players in automotive ER&D services globally.
Deep domain knowledge and expertise in the automotive industry.Offering end-to-end solutions for EV development, manufacturing and after-sales services.Global player with marquee clients from Europe, North America, and Asia Pacific.
A material portion of their revenue comes from the top 5 clients.They derive their revenue primarily from the automotive industry, and its performance can impact the company’s operation, cash flow, and revenue.Uncertainties in the EV sector can impact future operations and cash
Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position
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