Tata Investment Share Price: Tata Investment Corporation shares rallied more than 15 per cent to hit a 52-week high on Monday. At this price, the scrip has zoomed 38.95 per cent in two consecutive trading sessions. The multibagger counter has ascended by more than 100 per cent in the last six months.
The rally in Tata Investment Corporation share price comes ahead of the Tata Technologies IPO, which will open for public subscription on November 22. Tata Technologies is a subsidiary of Tata Motors and Tata Investment Corporation is a promoter group entity of the automobile major.
Tata Investment Corporation is a non-banking financial company (NBFC) and holds stakes in many Tata Group companies including Tata Consultancy Services (TCS), Tata Steel, Tata Consumer Products, Tata Chemicals, Tata Elxsi and Trent.
Tata Investment Corporation had, on November 17, announced the appointment of Vaibhav Goyal as the general manager.
“Vaibhav Goyal is a Chartered Accountant and Chartered Financial Analyst. He has an experience of more than 15 years covering various key sectors at various position of Indian equity market. Further, he has fund management experience of more than 5 years,” Tata Investment Corporation said in a regulatory filing.
The price band for Tata Tech IPO has been fixed at Rs 475-Rs 500 per share. Investors willing to apply for the issue could bid for a minimum of 30 shares and multiples of 30 shares thereafter.
The IPO would comprise of an offer for sale (OFS) of up to 60,850,278 shares including sale of up to 46,275,000 shares by Tata Motors Ltd, up to 9,716,853 shares by Alpha TC Holdings and up to 4,858,425 Equity Shares by Tata Capital Growth Fund I.
“Focusing on verticals like auto (75 per cent of overall revenue) and aero (part of others, 10 per cent of revenue), Tata Tech is a mid-size ER&D services company with ~$547 million revenue. It has long-term collaborations with anchor clients (Tata Motors and JLR, 40 per cent of auto revenue) and offers turnkey vehicle-development solutions for combustion & electric powertrains. Besides, it offers manufacturing cost reduction and after-sales solutions,” said Anand Rathi in a note.
The brokerage expects Tata Technologies to see an improvement in Ebitda margins from the prevailing 18-19 per cent level and see offshoring and utilisation.
“As the current price action is trading way above all major daily exponential averages, there can be some profit booking in the coming sessions. If one has already bought, then trailing stop loss would be a sensible option. As we advance, Rs 4,000 would be credible support and resistance is seen Rs 4,800,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
