On 22nd November Tata Technologies IPO To Open For Subscription To Know Details

The Initial Public Offer (IPO) of Tata Technologies Ltd, has been fully subscribed within the first hour of the issue opening for subscription to the public. Tata Technologies recently became the first IPO from the Tata Group to be launched in the primary markets after a gap of two decades. The last Tata Technologies IPO Group was TCS, back in 2004. Today, TCS is the most valuable company in the Tata Group. Tata Motors which is selling about 4.63 crore shares in the much-awaited IPO of its subsidiary Tata Technologies IPO, will raise about Rs 2,314 crore at the upper price band of Rs 500 per share. The fundraising initiative is a strategic move by the Tata Group company to reduce its debt and achieve a net debt-free status by FY25.

Tata Tech, originally known as Core Software Systems, was incorporated in August 1994. In 1996, the Tata Group acquired a controlling stake in the company. The Average cost of acquisition for Tata Motors was just Rs 7.4 per share. It means that it is selling the stake it acquired at Rs 34.24 crore for Rs 2,314 crore to book a neat profit of Rs 2,279.50 crore.

Tata Technologies IPO, In the September quarter, the company reported that it had taken its net debt down to Rs 38,700 crore. Tata Motors Group CFO PB Balaji had told analysts earlier in the month that the Indian business will go net cash by the end of this year and the JLR by next year. Most brokers advised investors to subscribe to the IPO for long-term gains given the structural growth story.

Tata Technologies IPO Opens For Subscription Today

Tata Tech’s capabilities have primarily been developed through its association with Tata Motors and JLR over time. However, the company has successfully expanded its presence to include other OEMs/Tier-1 players, including new energy companies like VinFast. It has reduced its dependency on anchor clients to 46.0% in H1FY24, from 54.4% in FY20. The company has recently been impaneled by Airbus, which is expected to become a strong growth avenue and diversify its revenue base.

Mamta

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