Tata Motors set to make bumper gain on Tata Tech IPO
时间:2024-06-26 09:10:13 阅读(143)
Tata Motors stands to make 68 times return on the investment it made in its subsidiary Tata Technologies in the mid-1990s making it one of its most profitable bets.
The Mumbai-based automotive giant is set to raise a little under `2,300 crore at the upper end of the price band in the initial public offering (IPO) of Tata Technologies. The IPO which opened on Wednesday in the price band of Rs 475-500 was subscribed 6.55 times on the first day.
Alpha TC Holdings and Tata Capital Growth Fund 1 bought shares in Tata Technologies (TTL) at Rs 25.1, revealed the disclosure made in the prospectus.
In October, Tata Motors announced the sale of its 9.9% stake in TTL for an aggregate consideration of Rs 1614 crore. It entered into a share purchase agreement for the transaction with TPG Rise Climate being the lead investor.
The transaction which also included the sale of 0.9% stake to Ratan Tata Endowment Foundation for Rs 146.7 crore, gave TTL an equity valuation of Rs 16,300 crore.
The net automotive debt of Tata Motors at the end of the September quarter stood at Rs 38,700 crore. At Jaguar Land Rover the net debt stood at GBP 2.249 billion, which was half of the level it was a year ago. The company has committed to bring this down to under GBP 1 billion by the end of FY24.
TTL operates in the global engineering, research and development (ER&D) services industry, primarily across automotive, aerospace and TCHM verticals. The global ER&D spend for 2021 was approximately $1.64 trillion and is expected to grow to approximately $2.28-2.33 trillion by 2025.
The ER&D spend outsourced to third-party service providers reached $85-$90 billion in 2021 and is anticipated to grow at a 10-12% CAGR between 2021 and 2025, TTL said in its prospectus.
“The key growth drivers within the ER&D market include an increasing propensity to outsource, increasing regulatory interventions for safer and cleaner products, shrinking product innovation cycles and next-generation product technologies,” it further added.
Tata Motor, Jaguar Land Rover and Vietnam’s VinFast are some of the top five clients of TTL. The revenues of TTL highly depend on the automotive segment followed by industrial, aerospace and defence.
“We believe Tata Technologies is well placed to encash on the growth opportunities in the ER&D space and looking at the relatively cheaper valuations, we recommend investors to subscribe to the issue,” SBI Securities said.
猜你喜欢
- Rahul Gandhi meets Bajrang Punia, other wrestlers in Haryana amid WFI row
- Rakesh Jhunjhunwala-backed Akasa Air reveals first pics of India’s low-cost aircraft – Take a look
- Prohibitory orders imposed in Noida, Greater Noida for Dec 31, New Year – Know what is NOT allowed
- pura, is set to finish in six months.
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)
- India bond yields seen little changed before state debt sale
- Indian households beat best of fund managers as gold price soars; safe haven demand jumps amid market volatility
- India Today Group elevates Kalli Purie to executive editor-in-chief
- Rakesh Jhunjhunwala stock Indian Hotels up 23% so far in 2022, outperforms Nifty; shares may further jump 20%
- Rakesh Jhunjhunwala-backed Akasa Air reveals first pics of India’s low-cost aircraft – Take a look