Published : 18 May 2023
On March 9, 2023, Tata Technologies submitted a draft red herring prospectus (DRHP) for the sale of shares worth Rs.9.571 crores.
At the moment, Tata Motors owns 74.69% of the business. Tata Motors shares have been on the rise since a subsidiary of the Tata group filed a DRHP at SEBI.
● Due to the nature of the Tata Technologies IPO, which is entirely OFS, all net proceeds from the public offering will be deposited into the financial accounts of the parties selling their shares in the company. ● Tata Motors' financial situation could get better as it sells its company shares.
● According to the DRHP submitted by Tata Technologies Ltd. to SEBI, Tata Motors' input cost per share in Tata Technologies is Rs.7.40 per share, and Tata Motors' investment in Tata Technologies will increase significantly in absolute value.
● Net proceeds of Tata Technologies IPO will go to the balance sheet of Tata Motors and other shareholders instead of Tata Technologies Ltd. ● Due to the weak dollar, FIIs are anticipated to keep investing in Indian markets. Tata Motors is likely to bring FIIs in the short to medium term as the auto and banking industries are favorites of foreign investors.