Tata Motors hits a 52-week high after Tata Tech announces IPO price band

Tata Motors Share Price: Tata Motors' stock hit a 52-week high of Rs 678.55 on BSE on Thursday (November 16) after it said that it would sell its 11.41 per cent equity shares worth Rs 4.62 crore, and also on a day when a Tata group company-Tata Tech- declared its IPO band price. 

Tata Motors shares were trading higher by 0.56 per cent, or Rs 3.75, at Rs 675.40, at 10:07 am on BSE on Thursday.

Tata Tech IPO

Tata Tech on Thursday announced its IPO price band of Rs 475-Rs 500. The issue size of the IPO is Rs 2,890-Rs 3,042 crore.

The IPO has been issued under offer for sale scheme.

This is after nearly two decade when a Tata group company is coming up with an IPO.

The last Tata group company to launch an IPO was Tata Consultancies, which launched an IPO in 2004.

Interesting facts about Tata Technologies IPO

The valuation of the company has increased by 18-25 per cent in just one month

This is the first IPO by a Tata Group company after TCS IPO in 2004.

In October, promoter Tata Motors sold 9per cent of its stake to TPG Rise Climate SF at Rs 401.81/share for a total worth of Rs 1,467 crore.

The deal was done at valuation of Rs 16,300 crore.

The new IPO valuation at the price band of Rs 475-Rs 500 comes to Rs 19,200 crore-Rs 20,300 crore.

Tata Technologies' valuation has increased by Rs 3,000-Rs 4,000 crore (18-25%) in the last 1 month.

Tata Technologies has the business of providing product development and digital solution services to global OEM and TIER-1 suppliers.

It has a total of 18 global delivery centers present with 11,000 employees.

Special for Tata Motors shareholders

A total of 10% of OFS will be available to eligible shareholders of Tata Motors.

The maximum bid amount for Tata Motors shareholder is up to Rs 2 lakh.

Eligible Shareholders: Public Equity Shareholders being Individuals and HUFs (including ‘A’ Ordinary Shares in TML).

Important information about IPO

The IPO is open to subscription from November 22 to 24

The IPO price band is Rs 475-500/share

The IPO size is Rs 3,042.5 crore (at upper price band)

Some shareholders will sell their stake in IPO through OFS

The total share sale is 6.085 crore shares, and Tata Motors will sell 4.62 crore (11.41%) equity shares