Tata Investment Corporation Ltd., a Tata group investment business, saw a 19% increase in share price on Friday due to an opening opportunity resulting from Tata Technologies Ltd.'s initial public offering (IPO). Tata Technologies is a division of Tata Motors, and its issuance is scheduled for Wednesday, November 22. As of September 30, Tata Investment Corporation, a promoter group company, held a 0.33 percent ownership in Tata Motors. After Tata Consultancy Services (TCS) in 2004, this would be the Tata group's first initial public offering (IPO).
At least six additional listed Tata group companies, including Trent, Tata Elxsi, Tata Steel, Tata Chemicals, and Tata Consultancy Services, were held by Tata Investment Corporation in addition to Tata Motors.
The stock increased 19.40% on the BSE to reach a peak of Rs 3,885.65. The Tata Technologies initial public offering (IPO) pricing range is set at Rs 475–Rs 500 per share. Those who wished to apply for the issuance might place bids for multiples of thirty shares after the minimum of thirty shares.
An offer for sale (OFS) of up to 60,850,278 shares, including the sale of up to 46,275,000 shares by Tata Motors Ltd., up to 9,716,853 shares by Alpha TC Holdings, and up to 4,858,425 equity shares by Tata Capital Growth Fund I, will be included in the Tata Technologies IPO.
Tata Tech is a mid-size ER&D services company with approximately $547 million in revenue. The company focuses on sectors including auto (which accounts for 75% of overall revenue) and aircraft (which accounts for 10% of revenue). With 40% of auto income coming from its long-standing partnerships with Tata Motors and JLR, the company is an anchor client. It provides comprehensive vehicle development solutions for both combustion and electric powertrains. It also provides after-sales support and a reduction in production costs "In a letter, Anand Rathi stated.
The brokerage anticipates that Tata Technologies would witness utilization and outsourcing as well as an improvement in Ebitda margins from the current level of 18–19 percent.
