Tata Technologies IPO: Valuation and Gains for Tata Motors

Tata Technologies IPO: Valuation and Gains for Tata Motors

All You Need to Know About the Upcoming Tata Technologies IPO:

Tata Technologies’ recent filing with market regulator SEBI regarding its IPO caused a significant surge in Tata Motors’ shares on Friday, despite weak market sentiment on Dalal Street. The public issue will involve the sale of 8,11,33,706 Tata Technologies shares acquired by the auto major at ₹7.40 apiece. As a result, Tata Motors is anticipated to earn substantial profits from the IPO, making the market highly bullish on its shares. Stay updated with the latest news on Tata Technologies’ IPO and its impact on Tata Motors’ shares.

How Tata Motors Stands to Benefit from the Upcoming Tata Technologies IPO:

The upcoming Tata Technologies IPO is expected to have a significant impact on Tata Motors’ shares, according to Avinash Gorakshkar, Head of Research at Profitmart Securities. As Tata Motors has a stake in the IT company, they are expected to generate substantial cash flow from the IPO, as they acquired Tata Technologies shares at ₹7.40 per share. Gorakshkar predicts that the IPO will receive a positive response from investors due to the involvement of the prestigious Tata name. Although the IPO price is yet to be determined, it is anticipated to be at least 4-5 times the rate at which Tata Motors acquired its stake.

Anuj Gupta, Vice President – Research at IIFL Securities, also expects Tata Motors to benefit from the IPO in the near term, with increased cash flow and improved balance sheets. The company has recently beaten market estimates by a considerable margin, and with the reopening of the Chinese market, where it has significant exposure in JLR sales, the uptrend is expected to continue. In summary, the Tata Technologies IPO is poised to bring significant gains for Tata Motors, and investors should keep a close eye on the latest developments.

Anticipated Tata Technologies IPO Price and Its Potential Impact on Tata Motors’ Valuation:

The anticipated Tata Technologies IPO is expected to unlock value for shareholders, according to Gaurav Dua, Head – Capital Market Strategy at Sharekhan by BNP Paribas. Although the IPO price is yet to be determined, the street expects the company to list at a market capitalization of approximately Rs. 18,000 crore. Dua estimates that this could add around ₹35 to ₹40 per share in SoTP valuation of Tata Motors. Investors should closely monitor the latest updates on the IPO price, as it will have a significant impact on the overall valuation of Tata Motors.

Expert Analysis on the Outlook for Tata Motors Share Price:

According to Anuj Gupta of IIFL Securities, a strong rally is expected in the shares of Tata Motors. The current support level for Tata Motors’ share price is at ₹420 per share. Investors who already hold this stock in their portfolio are advised to hold it with a stop loss below ₹420 per share. Those looking to buy Tata Motors shares can do so at current levels with a short to medium-term target of ₹490 to ₹500 per share, while strictly maintaining a stop loss below ₹420 levels. Investors should keep a close eye on the market developments and adjust their investment strategy accordingly.

About Tata Technologies:

Tata Technologies, a subsidiary of Tata Motors, is a company within the Tata Group that offers a range of services including engineering and design, product lifecycle management, product development, manufacturing, and IT service management to original equipment manufacturers in the automotive and aerospace industries, as well as their suppliers.

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