The Sunday Investor ✨ The most awaited IPO ever is here

24 Nov, 20231 min read
The Sunday Investor ✨ The most awaited IPO ever is here

Last week in a nutshell

📈 The most-awaited IPO, Tata Tech, was oversubbed by ~70x.

🙌 Sam Altman returns to OpenAI, sacks the board that fired him.

😳 Raymond’s MD’s wife demands 75% as divorce settlement, could impact stock price. 

🌍 China's world GDP share faces the largest decline since the ‘60s

🛵 Ola Electric converts to public company ahead of IPO filing

The big story: The record-breaking IPO of 2023

In the humdrum world of engineering and product development, Tata Technologies stands out like a beacon. The three-day IPO, the first IPO from the Tata Group in two decades, closed on Friday with an overall subscription of 69.43 times with bids worth ₹1.56 lakh crore for an issue size of ₹2,200 crore. There’s no doubt that the company is a cash cow, here’s why. 

Tata Technologies' portion for retail investors saw 16.5 times subscription so far, while those reserved for shareholders of Tata Motors were subscribed over 29.19 times. This was purely an Offer for Sale (OFS), which means that the company will not receive any proceeds from the IPO.

However, Tata Technologies is a cash-generating company and had cash worth $150 million on its books at the end of the financial year 2023.

Our expert opinion: While Tata Tech is valued at 20,000 cr, just 3½ years ago, its parent company, Tata Motors itself, was valued at just 26,000 crores in market cap. 

Interestingly, peers like KPIT Tech and Tata LXC are trading at valuations of 80x earnings and 60x earnings, respectively. However, Tata Tech is at a valuation of roughly 28x to 30x, which is reasonable.

disclaimer: the information provided in this blog is for general informational purposes only. it should not be considered as personalised investment advice. each investor should do their due diligence before making any decision that may impact their financial situation and should have an investment strategy that reflects their risk profile and goals. the examples provided are for illustrative purposes. past performance does not guarantee future results. data shared from third parties is obtained from what are considered reliable sources; however, it cannot be guaranteed. any articles, daily news, analysis, and/or other information contained in the blog should not be relied upon for investment purposes. the content provided is neither an offer to sell nor purchase any security. opinions, news, research, analysis, prices, or other information contained on our blog services, or emailed to you, are provided as general market commentary. stack does not warrant that the information is accurate, reliable or complete. any third-party information provided does not reflect the views of stack. stack shall not be liable for any losses arising directly or indirectly from misuse of information. each decision as to whether a self-directed investment is appropriate or proper is an independent decision by the reader. all investing is subject to risk, including the possible loss of the money invested.

it’s time to grow your wealth

3 users1+ Lac investors are growing their wealth with Stack.
stack mb