Tata Investment soars 19% on value unlocking from Tata Tech IPO; up 80% YTD

Tata Investment stock has surged over 80 percent so far in 2023, its best annual performance since 2009

Shares of Tata Investment Corporation Ltd surged nearly 19 percent on November 17 on account of value unlocking opportunity with Tata Technologies IPO, which opens for subscription on November 22. Tata Tech is a subsidiary of Tata Motors in which Tata Investment is a promoter group entity.

Tata Investment Corporation Limited (TICL) is a non-banking financial company (NBFC) and is involved in long-term investments such as equity and equity-related securities. Other than Tata Motors, the company owns stakes in at least six other listed Tata group firms — Tata Chemicals, Tata Consumer Products Ltd, Trent, Tata Elxsi, Tata Steel and TCS.

At 12.38 pm, TICL was trading 18 percent higher at Rs 3,865.05 on the National Stock Exchange (NSE). Around 13 lakh Tata Investment shares changed hands on bourses compared to the one-week average of 52,000.

The stock has surged over 80 percent in 2023, its best annual performance since 2009 when it gained over 120 percent. In the last five years, the stock has rallied over 350 percent.

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The surge in Tata Investment share price also comes after the company announced the appointment of senior management personnel (SMP). It has appointed Vaibhav Goyal as the general manager (GM).

Goyal is a chartered accountant and chartered financial analyst with over 15 years of experience, covering various key sectors of the Indian market in various positions. "Further, he has fund management experience of more than five years," the company said.

Tata Technology IPO details

The Tata Technologies IPO, the first from the Tata group after the TCS issue in 2004, will open for subscription on November 22 and close November 24. The price band for the issue has been fixed at Rs 475-500 a share. At the upper price band, the company’s valuation stands at Rs 20,283 crore.

The company plans to raise Rs 3,042.51 crore through the issue, which is only an offer-for-sale (OFS) by the promoter and investors.

Also Read | Tata Tech sets IPO price band at over 47% discount to unlisted market price

Promoter Tata Motors will offload 4.62 crore equity shares worth Rs 2,314 crore in the OFS. Investors Alpha TC Holdings Pte Ltd will be selling 97.17 lakh shares worth Rs 486 crore, and Tata Capital Growth Fund I 49 lakh shares worth Rs 243 crore.

The company has reserved 20.28 lakh shares for its employees and 60.85 lakh shares for the shareholders of Tata Motors.

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