Tata Technologies IPO: Tata Group’s First IPO in After 20 Years

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Tata Technologies, a part of the Tata Group, is planning to go public with its Initial Public Offering (IPO) after almost two decades. The IPO is expected to be available for purchase sometime between the end of August and the middle of September.

Though the exact price range for the IPO has not been announced yet, experts estimate it to be around Rs 268 per share. This means that if you want to buy shares of Tata Technologies when the IPO is launched, you might need to pay around Rs 268 for each share.

Before the IPO is officially launched, there is a gray market where people can buy and sell shares before they become available on the stock market. In this gray market, the shares of Tata Technologies are being traded at a premium of Rs. 100 per share. This means that the current price of each share in the gray market is Rs. 100 more than what is expected to be the IPO price.

It’s a significant event for the Tata Group as they are coming up with an IPO for one of their companies after such a long time. Once the IPO is launched, interested investors can buy shares of Tata Technologies and become part-owners of the company. It’s important to keep an eye out for further updates regarding the exact date and price of the IPO.

What’s happening in the gray market?

The Tata Group hasn’t officially announced the date and price range for the Tata Technology IPO (Initial Public Offering). However, even before its official release, some people are already buying and selling these shares in what’s called the “gray market.” This market operates outside the official stock exchange.

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Experts say that the shares of Tata Technology are in demand in the gray market. Last Saturday, they were being sold at a higher price, Rs 100, compared to Rs 84 the previous weekend. This indicates that people are optimistic about Tata Technology’s IPO and are willing to pay more for its shares.

What might be the IPO price?

Rajesh Sinha, a senior research analyst, analyzed Tata Technologies’ financials. He found that the company had earned Rs 3,983 crore in revenue and Rs 513 crore in net profit over the past twelve months. This translates to a TTM EPS (Earnings Per Share) of Rs 12.65.

To estimate a possible IPO price, he compared Tata Technology to a similar company called Cyient. Cyient’s TTM revenue was Rs 6,016 crore, and its shares were trading at 23.5 times the TTM EPS of Rs 46.52.

Rajesh valued Tata Technologies at a 10 percent discount compared to Cyient. Using this valuation, the share price for Tata Technology would be Rs 268. With this price, the total value of Tata Technologies’ shares in the stock market would be Rs 10,852 crore.

When will the IPO of Tata Technologies start?

According to a report by LiveMint, Avnish Gorakshakkar, who is in charge of research at Profitmart Securities, said that we are still waiting for the official announcement about the IPO details of Tata Technologies. This whole process usually takes around one to one and a half months.

So, if everything goes smoothly, we can expect the IPO of Tata Technologies to begin somewhere between the end of August and the middle of September. Tata Technologies had applied for the IPO on March 9, 2023, to the Securities and Exchange Board of India (SEBI).

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In this IPO, the company plans to sell 9.571 crore shares, which is about 23.6% of its total paid-up share capital.

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