What’s Temperature Ahead Of Tata Technologies’ ?4,000 IPO
Piyush Jhunjhunwala
Founder, Stockify Fintech Pvt. Ltd. | CA, Pre-IPO Trading | Building the Best Platform to Buy Unlisted Pre- IPO Shares | Paving the way for risk-free Equity Investments.
Tata Technologies, a subsidiary of Tata Motors, is planning to bring India’s sixth biggest Initial Public Offering (IPO) after 18 years. The company is expected to raise the amount of Rs 4000 crore and work with two advisory firms. It is an excellent opportunity for investors to make good money by investing in the most anticipated?Tata Technologies’?upcoming IPO.?
Various reports suggest that the company started the process of listing the IPO and is working on raising funds at the?massive valuation?of Rs 16,200 to Rs 20,000 crore. Amid this Tata Technologies’ upcoming IPO news, it is vital to know the current market condition of the stock market. This blog gives you an overview of what’s going on in the market ahead of Tata technologies’ Rs 4000 cr. IPO.
Details Of Tata Technologies’ IPO
Tata Technologies is the subsidiary of Tata Motors that provides cutting-edge solutions in the engineering, automotive, defence, and digital service sector. Currently, its stakes are divided among Tata Motors(74.42%), Alpha TC(8.96%), and Tata Capital Growth Funds(4.4%). By looking at the performance of Tata technologies, an ace company in the engineering, automotive, aerospace, design, and technology sectors.?
In the last few fiscal years, Tata technologies also scaled in terms of revenue and generated around 2800 crore in FY 2020-21. It is one of the initial IPO during the tenure of N. Chandrasekaran, the current chairman of Tata Sons.?
The company officials also released a statement on this upcoming IPO that states, “An IPO would come at an opportune time, subject to market conditions, applicable approvals, regulatory clearances.”?
Expected Performance of Tata Technologies’ Upcoming IPO
Like any other company, Tata Technologies’ upcoming IPO has become the talk of the market. Financial experts have their views on this. The company already indicated that it will not sell everything and will be the particle divestment to increase the tech funding for upcoming projects. The officials also stated that raising an amount of Rs 4000 crore is great but unlocks the value. There is a clear forecast that this IPO of Tata technologies can get 5 to 6 percent of the current market cap of additional value.
Currently, there are limited details available about the performance of this much-awaited IPO and how profitable it will be for investors. On the other hand, experts also ask questions about the total market valuation of Tata Technologies, which is hard to justify at this stage. If we compare the other tech leaders in the sector, like Infosys, the price per share may be lower in the future.
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Why Should You Invest In Tata Technologies’ Upcoming IPO?
There are many expectations from this upcoming IPO of Tata Technologies. However, there is insecurity among the small investors or people who would like to benefit from this IPO. Since the various big companies have not performed well in the market and provided huge losses, there are different factors you need to consider before deciding whether to put your hard-earned money in?Tata Technologies’ pre-IPO shares. Here are the different benefits of investing in these unlisted pre-IPO shares:
Good Track record of Tata Motors
Tata Motors has an excellent record and offers consistent returns. There are some expectations from Tata Technologies’ upcoming IPO for investors as the company recorded a profitable revenue last fiscal year. However, it is too early to forecast how it will perform. The IPO will be subject to clearance, market volatility, statutory approval, and other critical factors. Since it is part of a reputed business group with a?great history, it is worth investing.
Excellent Performance In Different Sectors
Despite the pandemic and inflation, Tata technologies’ shares consistently perform well and deliver excellent results. As it works in different sectors like automobiles, digital services, and aerospace, it easily raises investors’ funding and is considered a profitable company. The graphs rapidly increase if we see their performance in the last few years. The other aspect to see about this company is its customer base, where you will not be disappointed.
Expected Growth of 5 to 15 per cent
One of the biggest reasons to invest in Tata technologies’ upcoming IPO is its expected growth. If we see the past performance of tata tech, it showed huge growth while serving the different sectors. Its annual revenue by the end of FY22 is Rs 358 Bn. Tata Motors subsidiary records a booming profit of Rs 64.9 Bn, including taxes. So, it’s a positive sign for the investors that the company records growth in revenue by 72%. Based on this number, the expected growth of Tata Technologies’ upcoming IPO share would be between 5-15 per cent, which makes it worth investing.
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