Tata Technologies IPO effect
Tata Technologies IPO effect Tata Technologies IPO DRHP (Draft Red Herring Prospectus) was filed on 9th March 2023 to sell up to 9.571 crore Tata Technologies shares. The Initial Public Offering (IPO) of Tata Technologies Ltd is an offer for sale by its existing shareholders, including Tata Motors, Alpha TC Holdings Pte and Tata Capital Growth Fund-I
Tata Motors currently holds 74.69 per cent stake in the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund-I have a 7.26 per cent and 3.63 per cent stake, respectively. So, after the Tata group subsidiary filed DRHP at SEBI, Tata Motors shares have been in uptrend and in last two months, Tata Motors share price has risen to the tune of 25 per cent
According to stock market
According to stock market experts, is completely OFS in nature, which means net proceeds of the public issue will go directly into the corpus of the entities offloading its shareholding in the company. As Tata Motors is offloading its shareholding in the company, market is expecting that Tata Motors financial would improve and hence better quarterly numbers can be expected from the auto major in upcoming quarters
As Tata Technologies IPO is completely OFS
Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Tata Motors Ltd would be a direct beneficiary of Tata Technologies IPO as the auto company is offloading its stake in Tata Technologies that it acquired at ₹7.40 apiece (as mentioned in the DRHP).
Tata Technologies IPO effect As Tata Technologies IPO is completely OFS in nature, net proceeds of the public issue would go to the corpus of Tata Motors instead of Tata Technologies. Hence, the IPO is expected to boost the balance sheet of Tata Motors instead of Tata Technologies. Therefore, market is expecting improvement in the financial of Tata Motors and better quarterly numbers in upcoming quarters
The Profitmart Securities expert
The Profitmart Securities expert said that those who want to apply for the Tata Technologies IPO, they have a chance to multiply their return from the public offer by buying Tata Motors shares. He said that every dip in Tata Motors share price till Tata Technologies
“Tata Motors share price
“Tata Motors share price is looking strong on chart pattern and the stock may go up to ₹525 apiece levels in near term. So, those who hold this Rekha Jhunjhunwala portfolio stock are advised to remain invested in the stock for ₹525 target maintaining trailing stop loss at ₹495 apiece levels. Once the stock sustains above ₹525, it may soon go up to ₹545 apiece levels. So, those Tata Motors shareholders who want to hold the stock for ₹545 apiece level target, they are advised to upgrade their trailing stop loss to ₹505 once the stock closes above ₹525 levels.”
