Tata Technologies IPO: GMP jumps. Key risks involved in this upcoming IPO | Mint – Mint

Tata Technologies IPO: After a gap of near 19 years, a Tata group company is going to list at Indian stock market and this new Tata group company is Tata Technologies Ltd, a Tata Motors subsidiary. Tata Technologies Ltd has received nod from the market regulator SEBI (Securities and Exchange Board of India), Dalal Street observers are eagery awaiting for the Tata Technologies IPO subscription opening date. According to stock market experts, Tata Technologies IPO date can be expected by the end of August 2023 or by mid-September 2023. So, Tata Technologies IPO subscription may open in next one month.
Meanwhile, after SEBI’s approval for the launch of Tata Technologies IPO, grey market has also started dropping signals in regard to this public issue, which is completely Offer for Sale (OFS) in nature. According to market observers, shares of Tata Technologies Ltd are available in grey market at a premium of 105 in grey market today.

Tata Technologies IPO GMP today

Market observers said that Tata Technologies IPO grey market premium (GMP) today is 105, which is 5 higher from its last week GMP of 89. They said that Tata Technologies IPO GMP has risen despite weak stock market sentiments in the week gone by that speaks volume about the kind of enthusiasm investors have in regard to this Tata group company in unlisted stock market.

Tata Technologies IPO price

Asked about Tata Technologies IPO expected price, market expert Anuj Gupta said, “Comparing Tata Technologies with its peer Cyient, market cap of Tata Technologies would come around 12,000 crore. As the company has proposed 405,668,530 shares to list on Indian bourses, Tata Technologies IPO price would come around 295. So, in case of neck to neck valuations, Tata Technologies IPO price can be expected around 295. Sometime, a company offer their stocks at 10-15 discount to make it more attractive for the investor. In that case, Tata Technologies IPO price may come around 265 to 270 per equity share. However, in case of high response expectations, companies also try to maximise its return and hence they offer their stock at higher valuations by same percentage points. In that case, Tata Technologies IPO price can be expected around 315 to 320 per equity share.”

Key reasons to apply for this upcoming IPO

Aamar Deo Singh, Head Advisory at Angel One believes that one should know the strength and weakness of the company before applying for the upcoming IPO. The Angel One expert listed out the following reasons to apply for the upcoming IPO:
1] The mid-cap company is a global engineering company that primarily offers services and technology solutions to leading OEMs and their tier-I suppliers.
2] Tata Technologies is one of the leading players in automotive ER&D services globally. 
3] Their clientele comprises 35 traditional OEM and tier-I suppliers and 12 new energy vehicle companies.
4] They have deep domain knowledge and expertise in the automotive industry and offer end-to-end solutions for EV development, manufacturing and after-sales services.
5] Tata Technologies is a global player with marquee clients from Europe, North America, and Asia Pacific.

Tata Technologies IPO: Key risks involved

Aamar Deo Singh of Angel One listed out following risks while investing in Tata Technologies IPO:
1] A material portion of their revenue comes from the top 5 clients.
2] They derive their revenue primarily from the automotive industry, and its performance can impact the company’s operation, cash flow, and revenue.
3] Uncertainties in the EV sector can impact future operations and cash flow.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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