Tata Technologies IPO: After getting SEBI’s nod for launch of initial public offering (IPO), Tata group is all set to launch its public issue after a gap of near two decades. primary market investors are eagerly waiting for the Tata Technologies IPO opening whereas grey market has also gone bullish on the public issue. After Tata Motors, who is one of the promoters selling its stake in this upcoming IPO of the Tata group company, speculations about the Tata Technologies IPO price and launch date are quite high.
According to stock market experts, Tata Technologies IPO price band could be around ₹400 to ₹542 per equity share as valuations of Tata Technologies Limited falls around ₹22,015 crore, if recent 9.9 per cent stake selling by Tata Motors is taken as cue for expected Tata Technologies IPO price. They said that much will depend upon the ofer on the table for investors. To make it more attractive and reasonably priced, Tata Technologies may keep the issue price close to ₹400 whereas to take advantage of the market huype and bull trend in primary market, the company may choose to keep Tata Technologies IPO price at around ₹540 per share levels.
Tata Technologies IPO price
Speaking on the possible price of Tata Technologies IPO, Omkar Kamtekar, Research Analyst at Bonanza Portfolio said, “On the 16th of October 2023, Tata Motors, the promoter of the IPO-bound Tata Technologies (Tata Tech), made an announcement stating that they have agreed to divest a 9.9 per cent stake in Tata Tech for a total consideration of 1,613.7 crores. The stake has been broken down, with 9 per cent purchased by TPG Rise Climate SF Pte Ltd, a climate-focused private equity fund, and the other 0.9 per cent purchased by the Ratan Tata Endowment Foundation. The equity valuation of Tata Tech has been imputed at Rs. 16,300 crores.”
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“If Tata Technologies presents the issue at the lowest Price to Earnings multiple of 37x, the derived market capitalization would be ₹22,015 crore. Based on this assumption, the market cap range would be between ₹16,300, which is the current valuation as per the transaction, and ₹22,015 crore, within which an IPO could be brought to the public. Therefore, the price range could be between ₹400 to ₹542 per share,” Bonanza Portfolio expert said.
Tata Technologies IPO date
Expecting Tata Technologies IPO date of launch in mid of November, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, “Tata Motors is a listed entiry and it is going to offload its stake in Tata Technologies Limited in the upcoming IPO. As Tata Motors Q2 results 2023 date has been announced on 2nd November 2023, Tata Technologies IPO may get open after two to three weeks after the Tata Motors Q2 results 2023. As per the primary market norms, Tata Motors can’t declare its results in next three weeks after the opening of Tata Technologies IPO or Tata Technologies IPO can be opened only after two to three weeks after the announcement of Tata Motors Q2 results. As Tata Motors Q2 results date is fixed on 2nd November 2023, I don’s see Tata Technologies IPO opening in October or in first fortnight of November 2023.”
Arun Kejriwal went on to add that Tata Technologies IPO may get launched in second fortnnight or earliest by mid-November this year.
Tata Technologies IPO GMP
According to market observers, Tata Technologies IPO grey market premium (GMP) today is ₹255, which means Tata Technologies IPO GMP today is ₹255. So, unlisted stock market is expecting ₹255 listing gain from the upcoming IPO of this Tata group company, which is yet to declare Tata Technologies IPO price and date of launch.
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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Updated: 21 Oct 2023, 10:01 AM IST