Tata Technologies IPO: Tata Technologies Ltd filed the Draft Red Herring Prospectus (DRHP) with the SEBI on March 9, 2023 to commence its initial public offering (IPO). The Tata Motors subsidiary plans to sell up to 9.571 billion shares, representing approximately 23.6 percent of its paid-up share capital, through an offer to sell. The IPO is an offer to sell by its existing shareholders, including Tata Motors, Alpha TC Holdings Pte and Tata Capital Growth Fund-I. Tata Motors currently owns a 74.69 percent stake in the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund-I own 7.26 percent and 3.63 percent, respectively.
Tata Technologies IPO: Tata Technologies Ltd filed the Draft Red Herring Prospectus (DRHP) with the SEBI on March 9, 2023 to commence its initial public offering (IPO). The Tata Motors subsidiary plans to sell up to 9.571 billion shares, representing approximately 23.6 percent of its paid-up share capital, through an offer to sell. The IPO is an offer to sell by its existing shareholders, including Tata Motors, Alpha TC Holdings Pte and Tata Capital Growth Fund-I. Tata Motors currently owns a 74.69 percent stake in the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund-I own 7.26 percent and 3.63 percent, respectively.
As Tata Technologies’ IPO is fully OFS, investors are busy calculating the monetary benefits to Tata Motors’ financial stocks following this listing. So those who own Tata Motors shares are also scanning the Gray Market (GMP) premium of Tata Technologies’ IPO, as some IPO benefits will trickle down to Tata Motors shareholders as well.
As Tata Technologies’ IPO is fully OFS, investors are busy calculating the monetary benefits to Tata Motors’ financial stocks following this listing. So those who own Tata Motors shares are also scanning the Gray Market (GMP) premium of Tata Technologies’ IPO, as some IPO benefits will trickle down to Tata Motors shareholders as well.
Referring to the valuations and other details related to Tata Technologies Ltd, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio said, “Tata Technologies has reported TTM earnings from €3,983 crore and TTM net profit of €513 crore, resulting in a TTM EPS of €12.65 If we want to compare Tata Technologies, we can compare to Cyient since Cyient is mainly after the same business and TTM revenues €6,016 crores. Cyient is currently trading at 23.5 times TTM EPS €46.52.”
Referring to the valuations and other details related to Tata Technologies Ltd, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio said, “Tata Technologies has reported TTM earnings from €3,983 crore and TTM net profit of €513 crore, resulting in a TTM EPS of €12.65 If we want to compare Tata Technologies, we can compare to Cyient since Cyient is mainly after the same business and TTM revenues €6,016 crores. Cyient is currently trading at 23.5 times TTM EPS €46.52.”
Tata Technologies IPO: Possible price
Speaking on the possible Tata Technologies IPO price that investors can expect, the Bonanza Portfolio expert said, “We have priced Tata Technologies at a discount of 10 percent to the multiple assigned to Cyient at 21.2x TTM EPS, at 21.2x TTM EPS to achieve an intrinsic value of €268 per share. This results in a market capitalization of Tata Technologies of €10,852 crores.”
Tata Technologies IPO: Possible price
Speaking on the possible Tata Technologies IPO price that investors can expect, the Bonanza Portfolio expert said, “We have priced Tata Technologies at a discount of 10 percent to the multiple assigned to Cyient at 21.2x TTM EPS, at 21.2x TTM EPS to achieve an intrinsic value of €268 per share. This results in a market capitalization of Tata Technologies of €10,852 crores.”
Tata Technologies IPO GMP
According to the primary market watchers, Tata Technologies stock price is re-quoting €850 in the gray market today. As expected, Tata Technologies IPO price is round €268 per share (at a 10 percent discount from the Bonanza portfolio expert’s valuations) Tata Technologies IPO GMP would tumble today €582 ( €850 – €268).
Tata Technologies IPO GMP
According to the primary market watchers, Tata Technologies stock price is re-quoting €850 in the gray market today. As expected, Tata Technologies IPO price is round €268 per share (at a 10 percent discount from the Bonanza portfolio expert’s valuations) Tata Technologies IPO GMP would tumble today €582 ( €850 – €268).
Multibagger returns for investors
So, the gray market is signaling that the upcoming IPO could bring its investors a multibagger return as Tata Technologies’ IPO GMP today is more than 200 percent of Tata Technologies’ possible IPO price.
Multibagger returns for investors
So, the gray market is signaling that the upcoming IPO could bring its investors a multibagger return as Tata Technologies’ IPO GMP today is more than 200 percent of Tata Technologies’ possible IPO price.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint. We advise investors to consult certified professionals before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint. We advise investors to consult certified professionals before making any investment decisions.
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