Tata Technologies IPO: Most Awaited IPO From Tata Group To Benefit Tata Motors

Tata Technologies IPO is the most awaited IPO, since the time Tata Motors Ltd announced its separation of technical business division. Soon after when Tata Technologies Ltd filed papers for launching its initial public offering (IPO), investors are wondering the impact of Tata Technologies IPO on Tata Motors.

Through the IPO, Tata Motors will offload upto 95,708,984 equity shares of Tata Technologies Limited. Tata Motors has a contribution of 81,133,706 shares as the main promoter. While its other two investors Alpha TC Holdings Pte. Ltd has a portion of 9,716,853 equity and Tata Capital Growth Fund I owns 4,858,425 equity.

Markets experts are having a positive view on Tata Motors shares and Tata Technologies IPO. The IPO is expected to hit the markets within next two to three months, is going to be beneficial for Tata Motors as it acquired Tata Technologies shares for Rs 7.40 per share, while the weighted average cost of acquisition for Alpha TC Holdings Pte. Ltd and Tata Capital Growth Fund I was Rs 25.10 each

As Tata Motors has the majority stake in the company, and the price band is not yet decided. It is expected that the IPO price would be quoted higher than the rate at which it was acquired, thus Tata Motors would gain the most from it.

Besides, globally also, the environment, especially in US, indicating of a slowdown in economy would ensure for opportunities of investment in emerging markets. FIIs look at emerging markets that includes Indian stock market as well. It is noticed that Tata Motors is the most preferred stock by FII and mutual fund, hence is expected to get benefit of latest stock market triggers as well.

Today, Reserve Bank of India's (RBI) statistical supplement figure that was released, showed that India's foreign exchange reserves increased by 6.3 billion USD to jump to 584.76 billion USD for the week ended 7 April.

About Tata Technologies IPO

Tata Technologies Limited is a subsidiary arm of Tata Motors Limited, a large cap auto company part of Tata Group conglomerate founded in 1989 with headquarters in Pune.

The company offers services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers and their suppliers. The company is active in North America, Europe, the Middle East and the Asia Pacific region. It has 18 global centers across 27 countries

For the nine months ended December 2022, the firm reported revenue from operations of Rs 3,011.79 crore against Rs 2,607.30 crore for the nine months ended December 2021. The profit after tax was reported at Rs 407.47 crore for December 2022, higher than the previous year profit of Rs 331.36 crore.

How to apply?

One can apply for Tata Technologies IPO via ASBA available through bank accounts. Login to online bank an apply by selecting the IPO in invest section. Or download forms available on NSE and BSE to fill and apply for the IPO.

Tata Motors Ltd Share movement

The stock price of Tata Motors Ltd ended at Rs 469.55 per share, it was up by 0.92% over previous day's closing. Its 52-week high is at Rs 494.50 per share and 52-week low is at Rs 366.05 per share. In last one year it has surged by 8.28% and over three years it has rallied massively by 544.54%.

Disclaimer
This article is for information purposes only and is not a recommendation to buy, sell or hold. Greynium Information Technologies and the Author, are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.