Tata Technologies is a global leader in engineering and technology services. It provides product development and manufacturing solutions to companies across the world. It has recently announced an Initial Public Offering (IPO) of unlisted shares. Tata Technologies is one of the unlisted blue-chip stocks that investors appear to prefer over new-age and loss-making businesses.In this article, we will discuss the details of the IPO, how it works, the benefits of investing in Tata Technologies unlisted shares, and how to go about buying them.
Overview of Tata Technologies
Tata Technologies is the world leader in engineering and technology services, and it does business in more than 20 countries. It helps companies in different industries, such as automotive, aerospace, consumer products, and more, with product development and manufacturing. Tata Technologies has been a big player in the industry for a long time and has won a lot of awards for its work.
According to a report in the Economic Times, the tentative valuation for the Tata Tech IPO that the company is aiming for is set at Rs 16,200 crore to Rs 20,000 crore. Before this, the Tata Motors board also approved a partial divestment of its stake in Tata Tech via a public float, as per the report. It adds that at that time, the company had said in an exchange filing that the IPO would come “at an opportune time, subject to market conditions, applicable approvals, and regulatory clearances.”
What is the Tata Technologies IPO?
As of now, Tata Technologies offers unlisted shares for sale to individual investors. According to Tata Motor’s 2022 annual report, the company owns 74.43% of Tata Technologies. Tata Motors would sell this stake through the IPO, the proceeds will help the reeling automaker in expansion and growth.
The Tata Group Company has started planning for the Tata Technologies IPO, which might launch as early as the first quarter of the financial year 2023–2024, which falls between April and June of next year. The shares will be for sale on the open market, and the price will depend on how many people want to buy them.
The IPO will be a big deal for the company, and investors are likely to become more interested as a result. It is a great opportunity for investors to get in on the ground floor of a well-established company.
Update on Unlisted Shares of Tata Technologies
The Tata Technology Unlisted Share will have a face value reduction from Rs. 10 to Rs. 2 with the corporate announcement in December 2022, and there will be an issue of 1:1 Bonus Shares, giving every shareholder 10 Shares for every Share they own. Tata Technologies’ stock currently trades for Rs 6,000 per share on the unlisted market; however, after the bonus and split, the price will only be Rs 600 per share. The P/E is 50x at the present market price of Rs. 6,000, which appears high. The IPO price, after bonus and split, may fall between Rs 400 and Rs 600.
If we look at the financial development, we can state that the revenue from Tata Technology Unlisted Shares has climbed dramatically, going from 2400 Cr in FY21 to an anticipated -4000 Cr in FY23. And even at the current market price, good money can be made if they continue to increase at the same rate over the next three to five years.
Total available shares: | 1000 |
Face value: | Rs 2 per share |
Lot Size: | 50 |
Tata Technologies Financials
In FY22, the company reported revenue of Rs 3,529.57 crore, up 48 percent from the previous year, while net profit increased by 83 percent to Rs 436.97 crore. Its operating margin was 18.3 percent in FY22, up from 16.3 percent the previous year.
Service income climbed 38.4 percent to Rs 2,654.8 crore from Rs 1,917.7 crore in FY21, while revenue from technological solutions increased 88.6 percent to Rs 873.61 crore.
The company makes most of its money from the Tata Group, especially from Tata Motors and Jaguar Land Rover. Tata Tech, on the other hand, has expanded its percentage of business generated outside the company. Its non-captive account contribution climbed to 64% in FY22, up from 46% in FY20.
Benefits of Investing in Tata Technologies Unlisted Shares
Investing in Tata Technologies unlisted shares has many benefits. To begin with, the company is well-established and successful, and its products and services are in high demand. This means that the stock is likely to perform well in the long-term.
Secondly, investing in the IPO will give investors a chance to get in on the ground floor of a successful company. This can be a great way to see returns on investment in the long run.
Thirdly, investing in the IPO will allow investors to diversify their portfolios. This can be a great way to spread out risk and ensure that your investments are well-balanced.
Finally, investing in the IPO will give investors a chance to be part of the success of a major global player in the engineering and technology services industry.
Tata Technologies Shares vs. TCS Shares
Tata Technologies and TCS (Tata Consultancy Services) are both part of the Tata Group, but they are separate entities.
Tata Technologies focuses on engineering and technology services, while TCS focuses on IT and consulting services. They also differ in terms of their customer base and revenue sources. Tata Technologies has clients in many different fields, while TCS has clients in the IT field.
In terms of the IPO, Tata Technologies is expected to raise US$1 billion from the offering, while TCS is expecting to raise around US$3 billion. This is a big difference, and investors should think about both companies before deciding which one to invest in.
How to Invest in Tata Technologies Unlisted Shares
Investing in Tata Technologies unlisted shares is a great way to capitalize on the success of a major global player in the engineering and technology services industry. To invest in the IPO, you will need to open a brokerage account. You can then place an order to purchase the stock at the IPO price.
Once the IPO is complete, the stock will be available to buy and sell on the open market. You can buy and sell the stock through your brokerage account. Alternatively, you can visit unlistedkart.com to buy unlisted shares.
Conclusion
Tata Tech and IPO would be the first for the Tata Group since Tata Consultancy Services went public in 2004. They would also be the first under Tata Group Chairman N Chandrasekaran, who took over in 2017. This is an exciting opportunity for investors to get in on the ground floor of a successful company. There are many benefits to investing in Tata Technologies unlisted shares, but it is important to understand the risks associated with investing in an IPO. Before investing, it is also important to learn about the company and the industry it works in. Finally, you should consider the liquidity of the stock and the fees associated with investing in it.
Investing in Tata Technologies unlisted shares can be a great way to capitalize on the success of a major global player in the engineering and technology services industry. Investors can make a smart decision about whether or not to invest in the IPO if they do their research and understand it.
