Tata Motors shares are witnessing strong buying as the Tata Group announced an IPO for Tata Technologies. The shares of Tata Motors have been surging rapidly since the announcement of the Tata Technology IPO. Three months ago, when Tata Technologies filed papers for its IPO, Tata Motors shares were priced at Rs. 430. Now, the shares have risen to Rs. 562 and are seeing a steady uptrend.
Here are some of the key highlights of the Tata Motors share surge:
30%+ Returns
On Friday, the stock ended 0.46% higher at Rs. 562.20. This level was only 2.48% below the 52-week high of Rs. 576.50 touched in the last session. Over the last three months, Tata Motors shares have given returns of over 30% to investors. Tata Motors has a significant stake in Tata Technologies.
Long-Awaited IPO
Tata Technologies’ IPO will be the first IPO from the Tata group in the last 19 years. The IPO is expected to improve the balance sheet of Tata Motors by reducing its stake in Tata Technologies. Investors are hopeful that this move will strengthen the company’s financials, which is driving the strong buying in Tata Motors shares. The IPO is expected to be offered for sale (OFS) entirely.
Tata Motors’ Stake in Tata Technologies
The IPO will see existing promoters and shareholders sell 9.5 crore shares. Tata Motors has a 74.69% stake in Tata Technologies, while Alpha TC Holdings holds 7.26% and Tata Capital Growth Fund 1 holds 3.53%.
Technical Analysts’ View
According to technical analyst Vaishali Parekh, the stock may face resistance around its one-year high level of Rs. 577 and may experience a slight correction with support at around Rs. 545. After that, Tata Motors shares could reach around Rs. 600 and then Rs. 620.
What Does the Company Do?
Tata Technologies provides services to the automotive, aerospace, industrial heavy machinery, and other industries. The company operates in many countries around the world, with a workforce of 9,300 employees. Its business spans across North America to Europe.
The Tata Technologies IPO is a long-awaited event for investors, and the strong buying in Tata Motors shares is a testament to the market’s confidence in Tata Motors’ future prospects.
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