Tata motor share price NSE 513.80 on 12/05/2023 and also it might be reach at 550 rupees.
While the market anticipates Tata Technologies’ IPO price to be about ₹40 per equity share, Tata Motors paid ₹7.40 per share for the company.
Tata Technologies IPO: Stock market observers have been busy assessing the impact of Tata Technologies IPO on Tata Motors since Tata Technologies Ltd filed papers to undertake its initial public offering (IPO). Tata Motors proposes to offer 8,11,33,706 Tata Technologies shares in this forthcoming IPO for ₹7.40 per share (as stated in the Draught Red Herring paper or DRHP). Experts are quite positive on both Tata Motors and the IPO of Tata Technologies. They stated that the market anticipates the public offering in the next two to three months, and while the price range has not been revealed, the market anticipates a significant advantage for Tata Motors, who purchased Tata Technologies shares for a pittance of ₹7.40 per share.
Retail investors who desire to apply for the Tata Technologies IPO should begin acquiring Tata Motors shares since the car stock is projected to stay in an upswing in the short term, according to stock market analysts. Tata motor share price nse 513 on 12/05/2023
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on how the Tata Technologies IPO may affect the Tata Motors share price, saying, “Tata Technologies IPO is expected to do well as the public issue has the backing of big brand Tata.” The public offering will provide cash flow for Tata Motors, which is projected to boost the automaker’s profits and financial sheet. Because Tata Technologies Ltd is an IT firm, it appears that the acquisition of Tata Technologies shares was entirely funded by the extra funds available at Tata Motors. As a result, Tata Motors’ IPO of Tata Technologies should be viewed as a profit booking.” He stated that Tata Motors posted good Q3 results in FY23 and that the Q4 results are projected to be attractive.
How the IPO of Tata Technologies will help TaMo
Gorakshkar stated that Tata Technologies has yet to set an IPO pricing, but it is certain that the IPO price would be at least 4-5 times the amount at which Tata Motors purchased a share in Tata Technologies. Tata motor share price nse 513 on 12/05/2023 .According to Avinash Gorakshkar, Tata Motors is projected to gain greatly from Tata Technologies’ IPO.
The IPO value of Tata Technologies
Anuj Gupta, Vice President of Research at IIFL Securities, explained how the Tata Technologies IPO is a win-win situation for Tata Motors shareholders, saying, “Tata Technologies IPO may unlock values for Tata Motors shareholders.” He stated that Tata Technologies has yet to declare its IPO pricing, but it is certain that its market valuation will be between ₹18,000 and ₹20,000 crores, and on that premise, we may estimate Tata Technologies IPO price to be about ₹40 per equity share.
The planned IPO will benefit Tata Motors stockholders.
Avinash Gorakshkar advised stock market investors to begin accumulating Tata Motors shares immediately because the auto stock is expected to benefit from recent global triggers such as the US Fed signalling concern about a looming economic slowdown in the US due to the bank crisis, falling US dollar rates, and the Dollar Index easing to 101. According to Gorakshkar, a weakening US dollar may compel FIIs to look into emerging markets, including the Indian stock market. Tata Motors is a preferred stock of FIIs and mutual funds, thus it is projected to profit from recent stock market triggers as well.Tata motor share price nse 513 on 12/05/2023
As a consequence, both short-term sentiments and fundamental factors such as Tata Technologies’ IPO and quarterly results indicate that Tata Motors shares are on the rise.
Sumeet Bagadia, Executive Director at Choice Broking, advised positioned investors to purchase Tata Motors shares, saying, “Tata Motors has given fresh breakout at ₹460 per share levels on closing basis and the stock is looking highly bullish on chart pattern.” One can purchase the stock at current levels with a short-term aim of ₹490 to ₹500 each and a stop loss of ₹450 apiece.”
Sumeet Bagadia advised those with Tata Motors shares in their stock portfolio, “Those with Tata Motors shares in portfolio can upgrade their trailing stop loss at ₹450 and hold for ₹490 to ₹500 per share target.”
