Shares of Tata Motors Ltd will be in focus on Thursday morning, as its arm Tata Technologies Ltd makes market debut later today. Tata Motors shares had jumped 2.09 per cent to Rs 712.15 on BSE in the previous session, ahead of the arm's listing.
The owner of British brand Jaguar & Land Rover had earlier updated stock exchanges about the Tata Technologies IPO, saying Tata Motors had approved transfer of 60,850,278 equity shares to various investors, who successfully subscribed to the Tata Technologies IPO. Out of the total issue, 46,275,000 equity shares were offered for sale by the Tata Motors, 9,716,853 shares by Alpha TC Holdings Pte and 4,858,425 shares by Tata Capital Growth Fund I.
The shareholding of Tata Motors in Tata Tech has fallen to 53.39 per cent from 64.79 per cent (i.e. to 216,569,816 shares from 2,62,844,816 shares), of the issued and paid-up equity share capital of Tata Technologies. Last heard, Tata Tech was commanding a premium of Rs 425 in the grey market, hinting at a likely 85 per cent listing pop.
Tata Motors is India's largest commercial vehicle company and the fourth-largest PV player. In PVs, the company has products in the compact and mid-size cars and utility vehicle segments.
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Through subsidiaries and associates, the company operates globally. Key among them is Jaguar Land Rover, a business comprising two iconic British brands-Jaguar and Land Rover.
Tata Motors is seeing strong demand for JLR products, specifically Land Rover, as the brand is aspirational in nature. Despite the macroeconomic challenges that have persisted over a year, the business has performed well, Antique Stock Broking, which hosted Auto Conference 2023, said.
In the PV space, Tata Motors does not see the entry-level car segment as a lucrative business, Antique said.
"Anticipating inevitable competition in the Indian EV market, efforts will be made to leverage first-mover advantage. This includes utilizing technological insights such as route data, sales analytics, user behavior, etc. The strategy involves offering products at various price points and delivering on commitments to introduce 10 new models as per the outlined plan," the brokerage that hosted the Tata Motors management said.
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