Last updated: Nov 20, 2023 11:26 IST
Shares of Tata Investment rose 20%. The stock is up almost 40% in one week and more than 112% year-to-date (YTD).
Tata Investment Corporation share price: Shares of Tata Investment Corporation rose more than 15 percent to hit a 52-week high on Monday
Tata Investment share price: Shares of Tata Investment Corporation rose more than 15 percent to hit a 52-week high on Monday. At this price, the scrip has risen 38.95 percent in two consecutive trading sessions. The multibagger counter has increased by more than 100 percent in the past six months.
The rally in Tata Investment Corporation’s share price comes ahead of Tata Technologies’ IPO, which opens for public subscription on November 22. Tata Technologies is a subsidiary of Tata Motors and Tata Investment Corporation is a promoter group of the auto giant.
Tata Investment Corporation is a non-banking financial company (NBFC) and has interests in many Tata Group companies, including Tata Consultancy Services (TCS), Tata Steel, Tata Consumer Products, Tata Chemicals, Tata Elxsi and Trent.
Tata Investment Corporation had announced the appointment of Vaibhav Goyal as Managing Director on November 17.
“Vaibhav Goyal is a chartered accountant and a chartered financial analyst. He has over 15 years of experience covering several key sectors in various positions in the Indian stock market. Moreover, he has over five years of experience in fund management,” Tata Investment Corporation said in a filing with the regulator.
The price range for Tata Tech’s IPO has been set at Rs 475-Rs 500 per share. Investors willing to apply for the issue can then bid for a minimum of 30 shares and a multiple of 30 shares.
The IPO would consist of an offer for sale (OFS) of up to 60,850,278 equity shares, including sale of up to 46,275,000 equity shares by Tata Motors Ltd, up to 9,716,853 equity shares by Alpha TC Holdings and up to 4,858,425 equity shares by Tata Capital Growth Fund I.
“Tata Tech, which focuses on industries such as automotive (75 percent of total revenue) and aerospace (some of others, 10 percent of revenue), is a mid-sized ER&D services company with revenues of ~$547 million. It has long-standing partnerships with major customers (Tata Motors and JLR, 40 percent of automotive revenues) and offers turnkey vehicle development solutions for combustion and electric powertrains. Moreover, it offers production cost reduction and after-sales solutions,” Anand Rathi said in a note.
The brokerage expects Tata Technologies to see an improvement in Ebitda margins from the prevailing level of 18-19 percent and see offshoring and utilization.
“Given that the current price action is trading well above all major daily exponential averages, some gains could be made in the coming sessions. If one has already bought, a trailing stop loss would be a sensible option. As we move forward, Rs 4,000 would be a credible support and resistance is seen at Rs 4,800,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
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