The Tata group is gearing up for its first public issue in nearly two decades, with Tata Technologies IPO after securing SEBI’s approval. This upcoming IPO has piqued the interest of primary market investors and the grey market. This article explores the speculated price range for the Tata Technologies IPO and its potential launch date.
Tata Technologies IPO Pricing Range
Market pundits opine that the valuation span for the Tata Technologies initial public offering (IPO) may fluctuate within the bracket of ₹400 to ₹542 for each equity share. Tata Technologies Limited’s appraisal hovers around ₹22,015 crore, predominantly premised on Tata Motors’ recent divestment of a 9.9% stake. The ultimate IPO valuation remains contingent on the overture put forth for prospective investors.
Tata Motors, acting as a patron of Tata Technologies, disclosed the disposition of a 9.9% stake for ₹1,613.7 crores on the 16th of October, 2023. TPG Rise Climate SF Pte Ltd secured 9% of this equity, whereas the Ratan Tata Endowment Foundation procured the residual 0.9%. This transaction conferred an estimation of ₹16,300 crores upon Tata Tech.
Analysts from Bonanza Portfolio advance the proposition that if Tata Technologies prices the IPO at a judicious Price to Earnings (P/E) multiple of 37x, the market capitalisation is projected to reach ₹22,015 crore. Consequently, the prospective range for the IPO price is envisaged to span between ₹400 and ₹542 for each share.
Tata Technologies IPO Commencement Date
The projected initiation date for the Tata Technologies IPO is slated for the middle of November. Tata Motors, an entity listed on the stock exchange, will disengage from its stake in Tata Technologies Limited through this IPO. In light of the fact that Tata Motors is scheduled to unveil its Q2 financial results on the 2nd of November, 2023, it is probable that the Tata Technologies IPO will be unveiled in the two to three weeks following this occurrence.
Regulations within the primary market stipulate that Tata Motors cannot unveil its financial results within three weeks subsequent to the inauguration of the Tata Technologies IPO, or vice versa, the IPO can only embark on its journey within two to three weeks subsequent to the declaration of Tata Motors’ Q2 financial results. Hence, with Tata Motors’ Q2 financial results scheduled for the 2nd of November, 2023, the earliest conceivable window for the commencement of the Tata Technologies IPO lies in the middle of November.
Tata Technologies IPO Unofficial Market Premium
Market onlookers have remarked that the unofficial market premium (UMP) for the Tata Technologies IPO presently stands at ₹255. This implies that participants in the unlisted securities market are anticipative of a windfall to the tune of ₹255 from the IPO. Despite the absence of an official IPO price and launch date, this UMP mirrors unwavering ardour for the forthcoming public offering of the Tata Group company.
The Tata Technologies IPO is eliciting substantial interest, with high expectations concerning its pricing and inauguration date. Investors are anxiously awaiting to discern whether the IPO pricing will adopt a more conservative stance or capitalise on the buoyant state of the market. The anticipated launch date is likely to coincide with the disclosure of Tata Motors’ Q2 financial results, thus making the middle of November the earliest feasible timeframe.