Tata Technologies IPO: Expected price, GMP, other details and benefit for Tata Motors
Tata Technologies IPO: Date for launch of the public issue is yet to be declared but ever since Tata Technologies Ltd filed Draft Red Herring Prospectus (DRHP) to raise fund from its initial public offering ((IPO), investors are busy calculating the valuations and expected Tata Technologies IPO price. According to stock market experts, Tata Technologies market capitalisation may come around ₹10,852 crore if we compare its EPS with the current EPS of Cyient.
This means, Tata Tech share price or say IPO price should be around ₹268, as the DRHP of the company informs that Tata Technologies would be offloading up to 9.571 crore shares or 23.60 paid up share capital of the company.
Meanwhile, Tata Technologies IPO has made its debut in grey market as shares of Tata Technologies Ltd is available at ₹850 apiece in the unlisted stock market.
This means, grey market is highly bullish of Tata Technologies IPO and possible Tata Technologies IPO GMP (grey market premium) today is whopping ₹582 per share.
Tata Technologies IPO price & valuations
Speaking on Tata Technologies IPO details, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio said, “Tata Technologies has reported TTM revenue of ₹3,983 crore and TTM Net Profit of ₹513 crore, resulting an TTM EPS of ₹12.65.
If we want to compare Tata Technologies, we can compare with Cyient, as Cyient is mostly into same business and TTM revenue of ₹6,016 crore. Currently, Cyient is trading at 23.5x TTM EPS of ₹46.52.
We have valued Tata Technologies at 10 per cent discount to the multiple assigned to Cyient at 21.2x TTM EPS to arrive at intrinsic value of ₹268 per share.
Which result into market capitalization of Tata Technologies of ₹10,852 crore.”
Tata Technologies IPO GMP today
According to primary market observers, shares of Tata Technologies Ltd are trading at ₹850 apiece in unlisted share market. As expected Tata Technologies IPO price would be around ₹268 per share, this means Tata Technologies IPO GMP today is ₹582 ( ₹850 – ₹268) per share.
Market observers went on to add that grey market is highly bullish on Tata Technologies IPO and it is expecting that an investor may expect to get its money doubled on the listing date of this upcoming IPO.
Speaking on how Tata Technologies IPO would benefit Tata Motors, Avinash Gorakshkar, Head of Research at Profitmart Securities said, Tata Technologies IPO is completely offer for sale or OFS, which means the fund raised from the public issue will go to promoters.
As Tata Motors is one of those promoters who are going to offload its shareholding in Tata Technologies from the upcoming IPO, the money will work as net proceeds for Tata Motors.”
Avinash Gorakshkar went on to add that Tata Motors acquired Tata Technologies shares at ₹7.40 apiece levels that means Tata Motors would get whopping return on its investment in Tata Technologies.
He advised stock market investors to buy Tata Motors shares ahead Tata Technologies IPO launch as the public issue would benefit Tata Motors financials.
Tata Technologies IPO details
Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier-I suppliers.
Its services business provides outsourced engineering services and digital transformation services to global manufacturing clients helping them conceive, design, develop and deliver better products.
While its technology solutions business, it resell third-party software applications, primarily product lifecycle management (PLM) software and solutions and provide value added services such as consulting, implementation, systems integration and support.
The company is a strategic supplier to plane maker Airbus SA and is largely associated with the Tata Group, Jaguar Land Rover, and Tata Motors.
Tata Technologies has filed DRHP with the SEBI for its IPO on 9th March 2023. It plans to sell up to 9.571 crore shares, representing approximately 23.6% of its paid-up share capital through offer for sell.
The IPO is an offer for sale by its existing shareholders, including Tata Motors, Alpha TC Holdings Pte and Tata Capital Growth Fund-I. Tata Motors currently holds a 74.69% stake in the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund-I have a 7.26% and 3.63% stake, respectively.
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