One of the most anticipated IPOs of the year is almost here. The Tata Technologies IPO is set to open on November 22. Tata Technologies IPO price band is set at ₹475-₹500 per share. The public issue is an entirely offer-for-sale by existing shareholders.
Tata Motors, Alpha TC Holdings and Tata Capital Growth Fund will look to divest up to 6.08 crore equity shares. Out of those, 4.6 crore shares will be offloaded by Tata Motors, which represents around 11.41% stake in Tata Technologies.
As per the Red Herring Prospectus (RHP), Tata Motors’ weighted average cost of acquisition for these shares is around ₹7.40. The total cost of acquisition for 4.6 crore shares comes up to ₹34.24 crore. Now at the upper band of the IPO, these shares would be worth around ₹2,313.75 crore. That translates to a 6,657% return on investment.
Alpha TC Holdings and Tata Capital Growth Fund also stand to make a killing from the IPO as their weighted average cost of acquisition is ₹25.10. They would make a 1,892% return on their investment.
Get all the latest Share Market trends and news to set you up for the week ahead.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.