Tata Motors shares will be in focus when Indian stock market opens today as its subsidiary Tata Technologies Limited has filed addendum for its DRHP(Draft Red Herring Prospectus). As Tata Motors limited will be offloading its shareholding in this most awaited Tata Technologies IPO (Initial Public offering), Indian auto major is expected to benefit from this upcoming IPO. As Tata Technologies IPO is OFS (offer for sale) in nature, its net proceeds are expected to benefit balance sheet of Tata Motors Limited.
However, in stock market’s opening bell today, Tata Motors shares opened downside and hit intraday low of ₹612.50m per equity share, clocking over 1 per cent dip against Tuesday close of ₹620.45 apiece on NSE.
According to stock market experts, market is expected to react on developments in regard to Tata Technologies IPO and hence Tata Motors share will one of the stock in focus during Wednesday deals. They said that Tata Motors share price has already ascended after Tata Technologies Ltd filed RHP for its initial offer. But, there can be some more buying interest we can expect in the stock and advised ‘buy on dips’ strategy in regard to Tata Motors shares. They said that Tata Motors shares my go up to ₹680 apiece levels in near term.
Tata Motors share price target
Speaking on Tata Motors shares after Tata Technologies filing addendum for its DRHP, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Tata Motors Ltd would be a direct beneficiary of Tata Technologies IPO as the auto company is offloading its stake in Tata Technologies that it acquired at ₹7.40 apiece (as mentioned in the DRHP). As Tata Technologies IPO is completely OFS in nature, net proceeds of the public issue would go to the corpus of Tata Motors instead of Tata Technologies. Hence, the IPO is expected to boost the balance sheet of Tata Motors instead of Tata Technologies. Therefore, market is expecting improvement in the financial of Tata Motors and better quarterly numbers in upcoming quarters.”
Tata Tech IPO: Company files addendum to DRHP, to offer 9.57 crore shares for the issue
Advising ‘buy on dips’ strategy in regard to Tata Motors shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Tata Motors shares are looking positive on chart pattern. On can maintain buy on dips strategy in this auto stock maintaining stop loss at ₹580 apiece levels. Tata Motors shares is currently facing minor hurdle at ₹650 per share levels and on breaching this hurdle, the stock may go up to ₹680 apiece levels in near term.”
Tata Technologies IPO news
Tata Motors subsidiary Tata Technologies filed an addendum on Tuesday with SEBI to its DRHP. One of the most-awaited IPO on the Street, Tata Tech said it will offer 9.57 crore shares in its planed initial public offering (IPO) with a face value of ₹2 per share, according to the addendum filed with SEBI.
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As part of the Tata Tech IPO, Tata Motors will sell up to 8.11 crore shares via offer for sale, Alpha TC will sell up to 9.71 crore shares, Tata Capital Growth Fund I will offer up to 48.58 lakh shares.
The company has appointed financial institutions like JM Financials, Citi, and BoFA Securities to facilitate the IPO process.
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