Stock market observers have been analyzing the effect of Tata Technologies‘ IPO on Tata Motors since the company filed documents to begin its IPO. Tata Motors plans to sell 8,11,33,706 shares of Tata Technologies in this future IPO. The automaker purchased these shares at $7.40 per share (as detailed in the Draught Red Herring Paper, or DRHP).
Experts are quite bullish on both Tata Motors shares and the Tata Technologies IPO. He added that the market expects public issuance in the next two to three months, and although its price band has not announced, the market is expecting big profits for Tata Motors as it bought shares of Tata Technologies level of Rs.
Stock market investor is advise by Avinash Gorakshkar to start hoarding Tata Motors shares now, as recent global triggers such as the US Federal Reserve banking crisis are expect to benefit auto stocks.
On how the Tata Technologies IPO will affect the Tata Motors share price, Avinash Gorakhkar, Head of Research at Profitmart Securities, said: “The Tata Technologies IPO is expect to go well as the public issuance is back by the big brand Tata.
The public issue will generate cash inflows at Tata Motors, which is expect to improve the margin and balance sheet of the auto company. Since Tata Technologies Ltd. is an IT company, it appears it was solely an investment of the funds surplus available in Tata Motors when it acquired Tata Technologies Ltd. Shares were acquire.
Therefore, Tata Motors should see Tata Technologies’ IPO as profit booking.” He added that Tata Motors has reported strong figures in the third quarter of fiscal 23 and is expect to provide attractive figures in the fourth quarter.
How Tata Motors Will Benefit From Tata Technologies IPO
Gorakhskar said that Tata Technologies has yet to price the IPO. Still, he is confident that the Tata Technologies IPO will pricing at least 4-5 times the rate at which Tata Motors acquired a stake in Tata Technologies. Thus, Tata Motors is expect to earn big profits from Tata Technologies’ initial public offering, Avinash Gorakhskar said.
Tata Technologies IPO Valuation
Stating that the Tata Technologies IPO is a win-win situation for Tata Motors shareholders, Anuj Gupta, VP of Research at IIFL Securities, said, “The Tata Technologies IPO can unlock value for Tata Motors shareholders.” He said that Tata Technologies has yet to announce the IPO price.
Still, he is confident that its market capitalization will be around Rs 18 000 crore to 20 000 crores. Based on this, we expect Tata Technologies’ initial public offering price to be around Rs 40 per share. .it can wait.
Tata Motors shareholders to benefit from upcoming IPO
Avinash Gorakshkar advises stock market investors to start hoarding Tata Motors shares now as auto stocks are expect to benefit from recent global triggers such as the US Federal Reserve banking crisis. Dollar Gorakhskar said a fall in the US dollar could force FIIs to look at emerging markets, including the Indian stock market.
As Tata Motors is an FII and mutual fund preferred stock, it is also expected to benefit from the latest stock market triggers.
Therefore, near-term sentiment and fundamental developments such as the Tata Technologies IPO and quarterly results give bullish signals for Tata Motors shares.
Advising positional investors to buy Tata Motors shares, Sumeet Bagadia, CEO of Choice Broking, said: “Tata Motors has made a fresh break at Rs 460 per share at the close, and the stock chart pattern shows momentum extreme bullish.” buy the shares at current levels for a short-term target of ₹490 to ₹500 while keeping the stop loss near ₹450 levels.
For those who have Tata Motors shares in their stock portfolio, Sumeet Bagadia said: “Those who have Tata Motors shares in their portfolio can upgrade their trailing stop loss to ₹450 and move from ₹490 to ₹500.”
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