BackTata Technologies IPO: Current GMP, possible issue price you can expect
Tata Technologies share price is quoting ₹850 per share in unlisted share market, say market observers
PremiumTata Technologies IPO: Tata Technologies Ltd filed Draft Red Herring Prospectus (DRHP) with the SEBI on 9th March 2023 for the paunch of its initial public offering (IPO). The Tata Motors subsidiary plans to sell up to 9.571 crore shares, representing approximately 23.6 per cent of its paid-up share capital through offer for sell. The IPO is an offer for sale by its existing shareholders, including Tata Motors, Alpha TC Holdings Pte and Tata Capital Growth Fund-I. Tata Motors currently holds a 74.69 per cent stake in the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund-I have a 7.26 per cent and 3.63 per cent stake, respectively.
As Tata Technologies IPO is completely OFS in nature, investors are busy calculating the monetary benefits for Tata Motors financials after this IPO listing. So, those who have Tata Motors shares are also scanning grey market premium (GMP) of Tata Technologies IPO as some benefit of the IPO will trickle down to the Tata Motors shareholders as well.
Speaking on the valuations and other details in regard to Tata Technologies Ltd, Rajesh Sinha, Sr. Research Analyst at Bonanza Portfolio said, "Tata Technologies has reported TTM revenue of ₹3,983 crore and TTM Net Profit of ₹513 crore, resulting an TTM EPS of ₹12.65. If we want to compare Tata Technologies, we can compare with Cyient, as Cyient is mostly into same business and TTM revenue of ₹6,016 crore. Currently, Cyient is trading at 23.5x TTM EPS of ₹46.52."
Tata Technologies IPO: Possible price
On what could be the possible Tata Technologies IPO price that investors can expect, Bonanza Portfolio expert said, "We have valued Tata Technologies at 10 per cent discount to the multiple assigned to Cyient at 21.2x TTM EPS to arrive at intrinsic value of ₹268 per share. Which result into market capitalization of Tata Technologies of ₹10,852 crore."
Tata Technologies IPO GMP
As per the primary market observers, Tata Technologies share price is quoting around ₹850 in grey market today. As expected Tata Technologies IPO price is around ₹268 per equity share (at 10 per cent discount from its valuations as given by the Bonanza Portfolio expert), Tata Technologies IPO GMP today would fall around ₹582 ( ₹850 - ₹268).
Multibagger return for investors
So, grey market is signaling that upcoming IPO may give multibagger return to its investors as Tata Technologies IPO GMP today is more than 200 per cent from the possible Tata Technologies IPO price.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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