- By Vaamanaa Sethi
- Wed, 28 Jun 2023 01:41 PM (IST)
- Source:JND
The shares of Tata Motors are trading a tad higher today, June 28, after its subsidiary company Tata Technologies got approval from SEBI to raise funds through an initial public offering (IPO).
The shares opened at Rs 579.95, which was up by a percent or Rs 5 early morning at 9:30 am IST. The stock was trading at Rs 578.80, up by 1.93 per cent, at the time of writing this article, at 10:48 am IST.
Tata Motors stocks have been buzzing a lot lately in the market as investors are eagerly waiting for the much-awaited IPO of Tata Technologies. As per the draft filed by Tata Technologies, it is a fully offer for sale issue where the company will be selling 9.57 crore equity shares, approximately 23.60% of the company's paid-up share capital.
Tata Motors will be offloading 8.11 crore shares or 20% stake in its subsidiary company. Among other shareholders, Alpha TC Holdings plans to sell up to 97.16 lakh shares (2.40%) and Tata Capital Growth Fund I will offload up to 48.58 lakh equity shares (1.20%).
As per stock market experts cited by Livemint, the balance sheet of Tata Motors will be strengthened with the net proceeds of Tata Technologies IPO. Also, Tata Motors had acquired shares of Tata Technologies at a price of ₹7.40 apiece, as per the draft filings.
The auto giant also reported a consolidated net profit of Rs 5,408 crore in the fourth quarter of FY23, against a net loss of ₹1,032.84 crore in the same quarter a year ago. For the quarter ended on March 31, 2023, the auto also posted a 35% year-on-year (YoY) jump in consolidated revenue to Rs 1,05,932 crore.
