Tata Motors’ stock hits a record high after SEBI approved Tata Technologies’ IPO and announced a price hike for cars

Impact of Tata Technologies IPO: After the Securities and Exchange Board of India (SEBI) Tata Technologies Ltd. to launch its initial public offering (IPO), Tata Motors’ share price has become extremely optimistic. In fact, the automaker has been on an upward trend since Tata Technologies submitted the draft Red Herring Prospectus (DRHP) to SEBI on March 9, 2023. When Tata Technologies filed its DRHP with SEBI, Tata Motors shares were around ₹430 apiece, while Tata Motors’ stock price today is around ₹600 levels, representing a nearly 40 percent increase in deforestation over those nearly four months.

Impact of Tata Technologies IPO: After the Securities and Exchange Board of India (SEBI) Tata Technologies Ltd. to launch its initial public offering (IPO), Tata Motors’ share price has become extremely optimistic. In fact, the automaker has been on an upward trend since Tata Technologies submitted the draft Red Herring Prospectus (DRHP) to SEBI on March 9, 2023. When Tata Technologies filed its DRHP with SEBI, Tata Motors shares were around ₹430 apiece, while Tata Motors’ stock price today is around ₹600 levels, representing a nearly 40 percent increase in deforestation over those nearly four months.

Tata Motors stock price started gapping higher today before hitting an intraday high of ₹602.30 a share on the NSE, marking a new lifetime high for the auto stock. According to stock market experts, Tata Motors shares rose on positive sentiment towards the stock after SEBI approved Tata Technologies’ IPO last week and the automaker said it would raise car prices by 60 basis points. They said the net proceeds from Tata Technology’s IPO will flow into Tata Motors’ balance sheet as the upcoming IPO involves a $1.5 billion share offering ₹357 crore and an Offer to Sell (OFS) of 1.2 crore by promoters and existing shareholders, according to the Red Herring Draft Prospectus (DRHP). They said that Tata Motors stock price could rise to up to ₹625 a piece in the near future.

Tata Motors stock price started gapping higher today before hitting an intraday high of ₹602.30 a share on the NSE, marking a new lifetime high for the auto stock. According to stock market experts, Tata Motors shares have risen on positive sentiment towards the stock after SEBI approved Tata Technologies’ IPO last week and the automaker said it would raise car prices by 60 basis points. They said the net proceeds from Tata Technology’s IPO will go to Tata Motors’ balance sheet as the upcoming IPO involves a $1.5 billion initial public offering ₹357 crore and an Offer to Sell (OFS) of 1.2 crore by promoters and existing shareholders, according to the Red Herring Draft Prospectus (DRHP). They said that Tata Motors stock price could rise to up to ₹625 a piece in the near future.

Why are Tata Motors shares soaring?

Avinash Gorakshkar, Head of Research at Profitmart Securities, explains why Tata Motors shares are up today: “Automotive theme is already working in Indian market after strong economic indicators such as better than expected GDP figure, robust GST survey etc.” With Tata Motors announcing plans to raise passenger car prices and SEBI approving Tata Technology’s IPO, the market remains bullish on Tata Motors shares.”

Why are Tata Motors shares soaring?

Avinash Gorakshkar, Head of Research at Profitmart Securities, explains why Tata Motors shares are up today: “Automotive theme is already working in Indian market after strong economic indicators such as better than expected GDP figure, robust GST survey etc.” With Tata Motors announcing plans to raise passenger car prices and SEBI approving Tata Technology’s IPO, the market remains bullish on Tata Motors shares.”

Avinash Gorakshkar justified the market’s bullishness in Tata Motors shares after SEBI approved Tata Technologies’ IPO: “The Tata Technologies IPO is a mix of OFS and a new offering in which Tata Motors is one of the shareholders, the shares offer to OFS. This means net proceeds.” The share of the public offering goes to its promoters. Tata Motors is one of the promoters that offered its shares for sale in this IPO and expects to benefit from the IPO. Therefore, the market is extremely bullish on Tata Motors after SEBI approved Tata Technologies’ IPO as a public offering, taking another step closer to an IPO. Now the market is awaiting Tata Technologies’ IPO and the company’s announcement of its price range.”

Avinash Gorakshkar justified the market’s bullishness in Tata Motors shares after SEBI approved Tata Technologies’ IPO: “The Tata Technologies IPO is a mix of OFS and a new offering in which Tata Motors is one of the shareholders, the shares offer to OFS. This means net proceeds.” The share of the public offering goes to its promoters. Tata Motors is one of the promoters that offered its shares for sale in this IPO and expects to benefit from the IPO. Therefore, the market is extremely bullish on Tata Motors after SEBI approved Tata Technologies’ IPO as a public offering, taking another step closer to an IPO. Now the market is awaiting Tata Technologies’ IPO and the company’s announcement of its price range.”

Sumeet Bagadia, Executive Director at Choice Broking, advised on the ‘buy and hold’ strategy in relation to Tata Motors stock, saying: “Tata Motors stock is supported ₹570 and the chart pattern looks bullish. Those who have this stock in their portfolio may continue to hold the stock for a short-term goal ₹625 Keep stop loss at ₹570. For those who missed out on buying the shares earlier, they can also buy Tata Motors shares at the current market price ₹625 levels a piece, keeping the stop loss at ₹570 levels.”

Sumeet Bagadia, Executive Director at Choice Broking, advised on the ‘buy and hold’ strategy in relation to Tata Motors stock, saying: “Tata Motors stock is supported ₹570 and the chart pattern looks bullish. Those who have this stock in their portfolio may continue to hold the stock for a short-term goal ₹625 Keep stop loss at ₹570. For those who missed out on buying the shares earlier, they can also buy Tata Motors shares at the current market price ₹625 levels a piece, keeping the stop loss at ₹570 levels.”

Tata Technologies IPO Receives SEBI Approval

Last week, Tata Technologies Ltd received approval from SEBI to start its public offering. Tata Technologies is an offer-only offer (OFS) in which the company will sell up to 9.57 crore of shares, equivalent to approximately 23.60 percent of its paid-up share capital, according to the Red Herring Draft Prospectus (DRHP) filed in March . Under the OFS, Tata Technologies’ parent company, Tata Motors, will divest 8.11 crore of shares, or a 20 percent stake, in the company. Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 percent) and Tata Capital Growth Fund I would sell up to 48.58 lakh shares (1.20 percent).

Tata Technologies IPO Receives SEBI Approval

Last week, Tata Technologies Ltd received approval from SEBI to start its public offering. Tata Technologies is an offer-only offer (OFS) in which the company will sell up to 9.57 crore of shares, equivalent to approximately 23.60 percent of its paid-up share capital, according to the Red Herring Draft Prospectus (DRHP) filed in March . Under the OFS, Tata Technologies’ parent company, Tata Motors, will divest 8.11 crore of shares, or a 20 percent stake, in the company. Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 percent) and Tata Capital Growth Fund I would sell up to 48.58 lakh shares (1.20 percent).

Tata Technologies IPO details

Following the filing of the DRHP with SEBI on March 9, 2023, SEBI has approved the initial public offering of Tata Technologies. According to market observers, Tata Technologies share price is around ₹850 in an unlisted market, while Tata Motors had bought its stake in the paying company ₹7.40 per share. So the gray market signals a big win for Tata Motors from this IPO as the IPO is pure OFS.

Tata Technologies IPO details

Following the filing of the DRHP with SEBI on March 9, 2023, SEBI has approved the initial public offering of Tata Technologies. According to market observers, Tata Technologies share price is around ₹850 in an unlisted market, while Tata Motors had bought its stake in the paying company ₹7.40 per share. So the gray market signals a big gain for Tata Motors from this IPO as the IPO is pure OFS.

The IPO involves the reissuance of shares worth ₹357 crore and an Offer to Sell (OFS) of 1.2 crore by promoters and existing shareholders, according to the Red Herring Draft Prospectus (DRHP).

The IPO involves the reissuance of shares worth ₹357 crore and an Offer to Sell (OFS) of 1.2 crore by promoters and existing shareholders, according to the Red Herring Draft Prospectus (DRHP).

Providers of shares in OFS include promoters Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh and other shareholders, Fleet Line Shipping Services LLC, IDFC First Bank Limited, Denver Bldg Mat & Décor TR LLC and Green Desert Real Estate Brokers.

Providers of shares in OFS include promoters Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh and other shareholders, Fleet Line Shipping Services LLC, IDFC First Bank Limited, Denver Bldg Mat & Décor TR LLC and Green Desert Real Estate Brokers.

Proceeds from the reissuance component will be used to pay down debt and to purchase equipment and civil works required for the automotive oil capacity expansion at the Silvassa plant.

Proceeds from the reissuance component will be used to pay down debt and to purchase equipment and civil works required for the automotive oil capacity expansion at the Silvassa plant.

Disclaimer: The views and recommendations presented in this article are provided by individual analysts. These do not reflect the views of Mint. We recommend investors to consult certified experts before making an investment decision.

Disclaimer: The views and recommendations presented in this article are provided by individual analysts. These do not reflect the views of Mint. We recommend investors to consult certified experts before making an investment decision.

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