In a remarkable development, a prominent Tata group subsidiary, Tata Technologies Ltd, is poised to re-enter the Indian stock market after nearly two decades.
The subsidiary of Tata Motors has gained the approval of the market regulator SEBI (Securities and Exchange Board of India), marking a significant milestone.
Market enthusiasts and experts are eagerly anticipating the opening date of the Tata Technologies IPO subscription,
expected to materialize by the end of August 2023 or in mid-September 2023.
The highly anticipated IPO subscription phase is projected to commence in the next month.
Tata Technologies IPO Grey Market Premium (GMP) Today
Today, market insiders indicate that the Tata Technologies IPO grey market premium (GMP) stands at ₹105, representing a ₹5 increase from last week’s GMP of ₹89.
This rise in GMP comes against the backdrop of recent weak stock market sentiments. The surge in GMP underlines the remarkable enthusiasm of investors.
Insights into Tata Technologies IPO Price
Market expert Anuj Gupta sheds light on the expected price of the Tata Technologies IPO. Drawing a comparison with its peer Cyient, Gupta suggests that Tata Technologies could garner a market capitalization of approximately ₹12,000 crore.
With a proposed listing of 405,668,530 shares on Indian bourses, the indicative IPO price for Tata Technologies could hover around ₹295.
However, Gupta highlights the possibility of variations, citing scenarios where companies offer stocks at a slight discount for enhanced investor appeal (around ₹265 to ₹270), or at a premium for higher returns (approximately ₹315 to ₹320).
Reasons to Buy Upcoming Tata Technologies IPO
Aamar Deo Singh, Head of Advisory at Angel One, underscores key reasons for investors to consider participating in the forthcoming Tata Technologies IPO:
- Global Engineering Excellence: Tata Technologies is a mid-cap global engineering company renowned for its technology solutions and services catering to leading OEMs and tier-I suppliers.
- Automotive ER&D Prowess: The company has established itself as a dominant player in the global automotive Engineering, Research, and Development (ER&D) sector.
- Diverse Clientele: Tata Technologies boasts an impressive clientele of 35 traditional OEMs, tier-I suppliers, and 12 new energy vehicle companies.
- Holistic Automotive Solutions: Leveraging profound domain expertise, the company offers end-to-end solutions spanning EV development, manufacturing, and after-sales services.
- Global Reach: With a strong foothold across Europe, North America, and the Asia Pacific, Tata Technologies is a global contender with prestigious clients.
Navigating Risks in the Tata Technologies IPO
Aamar Deo Singh, also from Angel One, underscores the following risks that investors should be cognizant of when considering participation in the Tata Technologies IPO:
- Client Concentration: A substantial portion of the company’s revenue is derived from its top five clients, potentially posing concentration risks.
- Automotive Industry Dependency: Given that the majority of Tata Technologies’ revenue is tied to the automotive industry, the company’s performance is intricately linked to the sector’s fluctuations.
- EV Sector Uncertainties: As the electric vehicle (EV) landscape remains subject to uncertainties, any developments in the EV sector can have implications for the company’s operations, cash flow, and revenue.
