Tata Motors Stock Price Witnesses Surge Amid Tata Technologies IPO News
Tata Motors' share price rose at the open on June 28 after Tata Technologies, a subsidiary of Tata Motors, acquired Sebi authorisation to seek funds through an initial public offering (IPO).
The share price of Tata Motors began the day at 579.95, up approximately a percent or around 5. The stock was unable to maintain that level and fell back to trade around 576.20, up 3.15, or 0.55%.
Tata Motors shares has been soaring recently, as investors predict a big IPO in Tata Tech. According to the Draught Red Herring Prospectus (DRHP) submitted in March, the Tata Technologies IPO is entirely an offer for sale (OFS) deal in which Tata Motors will sell up to 9.57 crore equity shares, or about 23.60% of the company's paid-up share capital.
Tata Motors would sell 8.11 crore shares, or 20% of the firm, as part of the 23% sale. Alpha TC Holdings intends to sell up to 97.16 lakh shares (2.40%), and Tata Capital Growth Fund I intends to sell up to 48.58 lakh equity shares (1.20%).
The size of the IPO and the price range have yet to be disclosed.