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Tata Technologies IPO allotment cuts Tata Motors stake to 53.39%

Published Nov 29, 2023 12:25AM ET
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Tata Technologies Limited, a provider of engineering and product development digital services, has completed its Initial Public Offering (IPO) share allotment, resulting in Tata Motors (NYSE:TTM)' stake being reduced to 53.39% from 64.79%. The IPO saw strong investor demand, with the subscription closing on Friday, attracting bids 69.43 times the number of shares on offer.

Investors were notified on Tuesday that Tata Technologies had allocated a total of 60,850,278 equity shares. This significant interest from investors indicates robust market expectations, as evidenced by the grey market premium, which suggests an opening ₹414 (USD1 = INR83.293) above the offer price.

The company's focus on engineering and product development services has garnered substantial institutional interest and robust demand. The successful subscription and the grey market's positive outlook point to a strong debut for Tata Technologies on the stock market, reflecting investor confidence in the company's business model and future prospects.

InvestingPro Insights

Tata Motors, the parent company of Tata Technologies, has recently seen its stake in the latter reduce due to the successful IPO of Tata Technologies. As investors look forward to the company's future performance, some insights from InvestingPro might shed light on what could be expected.

InvestingPro Data indicates that Tata Motors (TAMO) has been experiencing revenue growth acceleration. This is particularly relevant as the company's ability to grow its top line could signal its potential in scaling operations and gaining market share, especially in the competitive Automobiles industry. Additionally, Tata Motors has been yielding a high return on invested capital, which is a testament to the company's efficiency in using its capital to generate profits.

From the InvestingPro Tips, it is worth noting that Tata Motors has strong earnings, which could allow management to continue dividend payments, offering an attractive proposition for income-focused investors. Furthermore, the company has a high shareholder yield, which combines dividend payments and share repurchases, indicating that Tata Motors is committed to returning value to its shareholders.

For investors who are considering taking a position in Tata Motors following the Tata Technologies IPO, these insights may be particularly compelling. With strong revenue growth and a high return on invested capital, along with a commitment to shareholder returns, Tata Motors appears to be a solid investment.

InvestingPro also lists a total of 19 additional tips for Tata Motors, providing a wealth of information for subscribers. Currently, there's a special Cyber Monday sale for InvestingPro subscriptions, with discounts of up to 55%. Additionally, users can use the coupon code sfy23 to get an extra 10% off a 2-year InvestingPro+ subscription, making it an opportune time to access these valuable insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Tata Technologies IPO allotment cuts Tata Motors stake to 53.39%
 

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