Tata Technologies’ IPO could begin this month. GMP, launch date, expected price, other details, apply or not?

Tata Technologies IPO: The Securities and Exchange Board of India (9SEBI) has approved the launch of the initial public offering (IPO) of Tata Technologies. As the IPO already granted approval for Tata Technologies IPO about a month ago, experts believe that Tata Technologies IPO will happen sometime this month as it will take about one to two months after SEBI’s approval to IPO will take. The gray market also remained stable in view of Tata Technologies’ IPO. According to market watchers, shares in Tata Technologies Limited are available at a premium of ₹100 on the gray market today.

Here we list important details related to the Tata Technologies IPO:

Date of Tata Technologies IPO

Commenting on the prospective launch date for Tata Technologies’ IPO, Avinash Gorakshkar, Research Director at Profitmart Securities said, “It has been almost a month since SEBI granted approval to launch Tata Technologies’ IPO. It usually takes one to two months for a company to announce this.” The start date of Tata Technologies’ IPO is therefore expected to be in September.

Expected price for Tata Technologies IPO

Discussing the details of Tata Technologies’ IPO, Rajesh Sinha, senior research analyst at Bonanza Portfolio said, “Tata Technologies reported TTM sales of ₹3,983 crore and TTM net profit of ₹513 crore, which corresponds to a TTM EPS of ₹12.65 If we want to compare Tata Technologies, we can compare with Cyient because Cyient mostly specializes in the same business and TTM revenue ₹6,016 crores. Cyient is currently trading at 23.5x TTM EPS ₹46.52. We priced Tata Technologies at a 10 percent discount to Cyient’s assigned multiple of 21.2x TTM EPS to determine the intrinsic value of ₹268 per share. This results in a market capitalization of Tata Technologies of ₹10,852 crores.”

Tata Technologies GMP IPO

According to market observers, Tata Technologies’ IPO is trading at a gray market premium (GMP) today. ₹100, which is unchanged from last weekend. They said that today’s IPO GMP of Tata Technologies is unchanged from last weekend due to trend reversal in Dalal Street. Earlier in the week, however, Tata Technologies’ GMP IPO was down to bare minimum ₹84 levels. But by the end of the week, shares of Tata Technologies regained lost ground and hit triple digits again on the unlisted stock exchange.

Based on the expected price for Tata Technologies IPO ₹268, Gray market signals Tata Technologies IPO could bring its lucky beneficiaries more than 35 percent IPO gains.

Review of Tata Technologies IPO

On whether or not to apply for Tata Technologies’ IPO, Aamar Deo Singh, Head Advisory at Angel One, gave the following five reasons to apply for the public offering:

1]Tata Technologies is one of the world’s leading providers of ER&D services to the automotive industry.

2]Tata Technologies customers include 35 traditional OEM and Tier I suppliers and 12 new energy vehicle companies.

3]Tata Technologies anchor customers included ₹10, 696.45 million, or 40.34 percent of revenue in fiscal 2022.

4]Tata Technologies provides end-to-end solutions for the design, manufacture and after-sales service of electric vehicles.

5]Tata Technologies is a global player with major customers in Europe, North America and Asia Pacific.

Disclaimer: The views and recommendations expressed above are provided by individual analysts or brokerage firms and not by Mint. We recommend investors to consult certified experts before making an investment decision.

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