Tata Group's upcoming IPO can be next wealth creator for investors, says Ambareesh Baliga
The last IPO of Tata Group, TCS, has created immense wealth for the investors, delivering compounding multibagger returns to the investors. It is among the top two most valued companies of Dalal Street.
- Oct 5, 2023,
- Updated Oct 5, 2023 2:08 PM IST
Dalal Street Veteran Ambareesh Baliga is all positive on the upcoming initial public offering (IPO) of Tata Technologies. In a special and exclusive interview with Business Today TV, Baliga said that the Tata Tech will receive a strong response from the investors, irrespective of the market conditions. He sees strong bidding for Tata Group firm even if the market sees some more correction. Commenting on the much-awaited IPO of Tata Technologies with BTTV, Baliga said that the investors have been eagerly looking forward to the issue and the buzz has been around it for quite some time. He thinks the IPO is likely to come anytime soon but does not wish to speculate around price band, valuations or issue size. Tata Group is coming with a primary stake sale in nearly two decades, after Tata Consultancy Services (TCS). Tata Technologies has received 10 per cent of the offer for the shareholders of Tata Motors, its parent company, while the eligible employees of Tata Technologies will receive a reservation of up to half a per cent in the IPO. Baliga suggested that investors should buy Tata Motors shares to apply for a shareholders' quota. It really makes sense to at least buy something in Tata Motors and become a shareholder and apply for it. Just remember that this will not be a duplicate application because one can apply as a shareholder as also the same person can apply as a public. One can put in two applications," he said. Baliga believes that reservation of shares for Tata Motors shareholders will be sentimentally positive for the company as investors will continue holding part of the shares but looking at the market cap of Tata Motors may not really see a secular rise. The initial public offering of Tata Technologies will entirely be an offer for sale of more than 9.57 crore equity shares. Tata Motors, which owns about 20 per cent stake in the company, will offload up 8.11 crore equity shares in the primary stake sale, while Alpha TC Holdings and Tata Capital Growth Fund I are other selling shareholders. The last IPO of Tata Group, TCS, has created immense wealth for the investors, delivering compounding multibagger returns to the investors and Baliga believes that Tata Technologies will be no exception. The Mumbai-based investor believes that Tata Group's upcoming debutant of the street will be the next wealth creator for the investors. "Look at all the Tata Group stocks. They have been very investor friendly and the sort of wealth which they have created for the shareholders is immense. I don't see Tata Technologies to be any different," he added. "But one should have a slightly long-term view to buy and possibly hold for the next five to ten years." However, he suggested investors to not compare Tata Technologies with Tata Consultancy Services or Tata Elxsi as all three companies have their own niche and different segment of operations. TCS is completely into software, whereas Tata Technologies is into product development and digital solutions, including turnkey solutions. It is basically catering to automotive and aerospace. Tata Elxsi provides design-led digital engineering, technology development, testing, and systems integration services and its close peer to Tata Technologies. Tata Technologies will reserve 50 per cent of the net offer for qualified institutional bidders, while non-institutional investors (NIIs) and retail investors will get 15 per cent and 35 per cent, respectively. JM Financial, Citigroup Global Markets India and BofA Securities India will manage the issue while Link Intime India is the registrar for this IPO.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Hot stocks on October 5, 2023: Zomato, Suzlon Energy, Navin Fluorine, Titan, Marico and more
Dalal Street Veteran Ambareesh Baliga is all positive on the upcoming initial public offering (IPO) of Tata Technologies. In a special and exclusive interview with Business Today TV, Baliga said that the Tata Tech will receive a strong response from the investors, irrespective of the market conditions. He sees strong bidding for Tata Group firm even if the market sees some more correction. Commenting on the much-awaited IPO of Tata Technologies with BTTV, Baliga said that the investors have been eagerly looking forward to the issue and the buzz has been around it for quite some time. He thinks the IPO is likely to come anytime soon but does not wish to speculate around price band, valuations or issue size. Tata Group is coming with a primary stake sale in nearly two decades, after Tata Consultancy Services (TCS). Tata Technologies has received 10 per cent of the offer for the shareholders of Tata Motors, its parent company, while the eligible employees of Tata Technologies will receive a reservation of up to half a per cent in the IPO. Baliga suggested that investors should buy Tata Motors shares to apply for a shareholders' quota. It really makes sense to at least buy something in Tata Motors and become a shareholder and apply for it. Just remember that this will not be a duplicate application because one can apply as a shareholder as also the same person can apply as a public. One can put in two applications," he said. Baliga believes that reservation of shares for Tata Motors shareholders will be sentimentally positive for the company as investors will continue holding part of the shares but looking at the market cap of Tata Motors may not really see a secular rise. The initial public offering of Tata Technologies will entirely be an offer for sale of more than 9.57 crore equity shares. Tata Motors, which owns about 20 per cent stake in the company, will offload up 8.11 crore equity shares in the primary stake sale, while Alpha TC Holdings and Tata Capital Growth Fund I are other selling shareholders. The last IPO of Tata Group, TCS, has created immense wealth for the investors, delivering compounding multibagger returns to the investors and Baliga believes that Tata Technologies will be no exception. The Mumbai-based investor believes that Tata Group's upcoming debutant of the street will be the next wealth creator for the investors. "Look at all the Tata Group stocks. They have been very investor friendly and the sort of wealth which they have created for the shareholders is immense. I don't see Tata Technologies to be any different," he added. "But one should have a slightly long-term view to buy and possibly hold for the next five to ten years." However, he suggested investors to not compare Tata Technologies with Tata Consultancy Services or Tata Elxsi as all three companies have their own niche and different segment of operations. TCS is completely into software, whereas Tata Technologies is into product development and digital solutions, including turnkey solutions. It is basically catering to automotive and aerospace. Tata Elxsi provides design-led digital engineering, technology development, testing, and systems integration services and its close peer to Tata Technologies. Tata Technologies will reserve 50 per cent of the net offer for qualified institutional bidders, while non-institutional investors (NIIs) and retail investors will get 15 per cent and 35 per cent, respectively. JM Financial, Citigroup Global Markets India and BofA Securities India will manage the issue while Link Intime India is the registrar for this IPO.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Hot stocks on October 5, 2023: Zomato, Suzlon Energy, Navin Fluorine, Titan, Marico and more