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Tata Technologies IPO: The public issue date has yet to be announced, but investors have been busy calculating valuations and predicting Tata Technologies IPO price since Tata Technologies Ltd filed Draught Red Herring Prospectus (DRHP) to seek funds from its initial public offering ((IPO). According to stock market specialists, the market capitalisation of Tata Technologies may be approximately 10,852 crores if its EPS is compared to Cyient’s present EPS. This means that the Tata Tech share price, or IPO price, should be around $268, as the company’s DRHP states that Tata Technologies will be dumping up to 9.571 crore shares, or 23.60 percent of the company’s paid-up share capital.
Meanwhile, Tata Technologies IPO has made its debut on the grey market, with shares of Tata Technologies Ltd accessible in the unlisted stock market for 850 per share. This suggests that the grey market is extremely positive on Tata Technologies’ IPO, with a probable Tata Technologies IPO GMP (grey market premium) of $582 per share today.
Tata Technologies IPO price & valuations
According to Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio, “Tata Technologies has reported TTM revenue of 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 do so with Cyient, which is mostly in the same business and has a TTM revenue of 6,016 crore. Cyient is currently trading at 23.5x TTM EPS of 46.52. Tata Technologies was evaluated at a 10% discount to Cyient’s multiple of 21.2x TTM EPS, yielding an intrinsic value of $268 per share. As a result, Tata Technologies’ market capitalisation is Rs. 10,852 crores.”
Tata Technologies IPO GMP today
According to primary market observers, Tata Technologies Ltd shares are currently trading at 850 per share on the unlisted share market. Tata Technologies IPO price is estimated to be about $268 per share, which means Tata Technologies IPO GMP today is $582 (850 – 268) per share. Market experts went on to say that the grey market is extremely bullish on Tata Technologies’ IPO and that an investor may expect to see their money doubled on the impending IPO’s listing day.
Benefit for Tata Motors
Avinash Gorakshkar, Head of Research at Profitmart Securities, explained how the Tata Technologies IPO would help Tata Motors, saying, “Tata Technologies IPO is complete offer for sale or OFS, which means the fund raised from the public issue will go to promoters.” Because Tata Motors is one of the promoters selling its stake in Tata Technologies in the impending IPO, the funds will serve as net proceeds for the company.”
Avinash Gorakshkar went on to say that Tata Motors bought Tata Technologies shares for $7.40 each, implying that Tata Motors would make a huge return on its investment in Tata Technologies. He recommended stock market investors to buy Tata Motors shares ahead of the Tata Technologies IPO, since the public offering would be beneficial.
Tata Technologies IPO details
Tata Technologies is a prominent global engineering services company that provides global original equipment manufacturers (OEMs) and their tier-I suppliers with product development and digital solutions, including turnkey solutions. Its services division helps global industrial clients conceive, design, develop, and deliver better products by providing outsourced engineering services and digital transformation services. It resells third-party software programmes, notably product lifecycle management (PLM) software, and solutions, and provides value-added services such as consultation, implementation, systems integration, and support through its technology solutions business. The corporation is mostly affiliated with the Tata Group, Jaguar Land Rover, and Tata Motors, and is a significant supplier to plane maker Airbus SA.
Tata Technologies has filed a DRHP with the SEBI in preparation for its IPO on March 9, 2023. It intends to sell up to 9.571 crore shares, or about 23.6% of its paid-up share capital, via an offer for sale. The IPO is a public offering of shares by the company’s existing shareholders, which include Tata Motors, Alpha TC Holdings Pte, and Tata Capital Growth Fund-I. Tata Motors owns 74.69% of the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund-I own 7.26% and 3.63%, respectively. Get More updates here on Tata new IPO