Tata technologies IPO
Tata technologies IPO, you can say it is one of the most awaited IPO is going to happen. Here we are going to check, what are the Importance things you need to check before going into an IPO?
- Business analysis of Tata Technologies
- Industry analysis of Tata technologies
- Fundamental analysis of Tata technologies
From this you will be able to Analise whether it’s a good IPO or Bad IPO, it’s better for a short term investment or long term investment. In how many ways it can be impact other Tata companies share price. You will get a clear picture about the Tata technologies IPO.
Tata Technologies Limited
It’s a multinational product engineering company. it provides services in the area of
- Engineering and design
- Product lifecycle management
- Manufacturing
- Product development
- IT service management
- Aerospace original equipment manufacturers
- Industrial machinery companies
Tata Technologies Limited is one of the subsidiary companies of Tata Motors. As of 2023, the company has more than 11000 workforce globally
Tata Technologies History
Tata Technologies was founded in 1989 and is headquartered in Pune Maharashtra. Tata technologies started as an automotive design unit of Tata Motors. It was separated and formed a new company in 1994 and most of the stocks held by Tata Motors. Tata Technologies took a significant acquisition in 2005. They have acquired INCAT International, a UK and US-based automotive and aerospace engineering company for £53.4 million.
Tata Technologies raised 141 crore capital by selling 13% of its stocks to Tata Capitals and Alpha TC Holdings.
Tata Technologies acquired Cambric Corporation, an American engineering company in 2013 for 32 billion dollars.
How the Tata Technologies IPO impact the other Tata companies shares
You might think that what kind of comparison is this. But here you need to understand there are few Tata companies are interconnected. So the changes in one company might impact on other companies as well
What are those companies?
- Tata ELXSI – Focusing more on software part
- Tata technologies Ltd – focusing more on hardware part
- TCS – execution capabilities
Why Tata Technologies IPO is launched
Financials of Tata Technologies Limited – Unlisted Shares (Fig in crores)
If you look at the revenue its 4501 crores and its last year revenue is 3578 crores. You need to understand that this is not a small company or this is not a start-up company like Zomato.
Tata Motors is the parent company for Tata technologies and they are performing very well in the market. If the subsidiary company of this will perform in the same way as like the parent.
The reason for the Tata technologies IPO, is they need a secondary capital and issuing shares is one of the best way to get more capital.
There are many ways a company can raise capital 1- primary capital and secondary capital
Primary capital
It is defined from the sum of capital surplus, undivided profits, reserves and contingencies and other capital reserves
Secondary capital
In this method they are raising the money from, the Share market
The reason behind is the company wants grow for that they need additional funds.
Fundamentals of Tata technologies
Comparing the last 3 financial years they are performing very well in markets
Picture
From this you can understand like Tata Technologies have a strong business.
What are the main focus industries of Tata Technologies?
- Automobiles
- Aerospace
- Industrial machinery
- Industrial
What are the main focus Areas of expertise of Tata Technologies?
- Engineering
- Research and development
- Digital enterprise solutions (DES)
- Products and value – added reselling
Their major revenue comes from the America and UK around 60% that means there is huge chance of growth for this company. From India they are making 30% – 40%. It’s not that expected growth
Do we need to Invest in This IPO?
The performance of the company seems to be good from a valuation point of view
The profits and revenue are seems to be OK from the analysis point of view
The company’s industry have a moderate growth rate
The company prepared IPO for raising more capital
OFS will help the existing share holders
Conclusion
By Analyzing these you can conclude to invest in this IPO or not. If you are plan for investing in this you can hold for long term period since in coming future it might increase the market share and that will help you to gain more profit Again it’s not an investment advice. You can take decision accordingly