Tata Investment Corporation witnessed a robust surge in its share price, soaring over 15% to reach a 52-week high on Monday, marking the second consecutive day of substantial gains. The share price of Tata Investment jumped by 15.79%, reaching ₹4,521.90 apiece on the BSE.
This significant upward movement follows a 20% surge in Tata Investment shares on November 17, contributing to an impressive overall increase of nearly 40% in just one week and an outstanding year-to-date gain of over 112%.
The rally in Tata Investment Corporation’s share price is notably timed ahead of the Tata Technologies IPO, scheduled to open for public subscription on November 22. Tata Technologies, a subsidiary of Tata Motors, has Tata Investment Corporation as a promoter group entity of the automotive major.
Tata Investment Corporation, categorized as a non-banking financial company (NBFC), holds stakes in various Tata Group companies, including Tata Consultancy Services (TCS), Tata Steel, Tata Consumer Products, Tata Chemicals, Tata Elxsi, and Trent.
On November 17, Tata Investment Corporation announced the appointment of Vaibhav Goyal as the general manager. Goyal, a Chartered Accountant and Chartered Financial Analyst with over 15 years of experience in key sectors of the Indian equity market, brings more than 5 years of fund management experience.
In the second quarter of FY24, Tata Investment Corporation reported a net profit of ₹113.24 crore, marking a 31.38% increase from ₹86.19 crore in the corresponding quarter of the previous fiscal year.
Analysts are optimistic about Tata Investment Corporation’s potential for value unlocking from the Tata Technologies IPO. The three-day bidding process for the IPO of Tata Technologies, a global engineering services company, is set to begin on November 22 and conclude on November 24. This IPO is noteworthy as it marks the first IPO from the Tata Group in nearly two decades. Tata Technologies, primarily focused on the automotive industry, aims to raise ₹3,042.51 crore through an offer for sale (OFS) of 6.09 crore equity shares by the promoter and investors.
Tata Motors, the promoter, will offload 4.62 crore equity shares worth ₹2,313.75 crore in the OFS, while investors Alpha TC Holdings Pte Ltd and Tata Capital Growth Fund I will sell 97.17 lakh and 48.58 lakh shares, respectively. The Tata Technologies IPO price band has been set at ₹475 to ₹500 per share.
As of 10:10 am, Tata Investment Corporation shares were trading 13.97% higher at ₹4,450.55 apiece on the BSE.