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In anticipation of the issue launch, the company's shares are in high demand in the grey market. The stock is fetching a premium of about Rs 280 in the unlisted market. Tata Technologies was last valued at around Rs 16,300 crore ($2 billion). The issue size isn't disclosed yet, but based on the valuations, analysts believe the offering could be anywhere between Rs 3,800-4,000 crore.
Sanjiv Bhasin of IIFL Securities, believes that the wealth effect is evident in capital goods and real estate, with companies like DLF and Godrej reaching new highs. He also highlights the strong performance of the real estate sector, particularly in companies like Purvankara and Brigade. Bhasin recommends cement stocks such as UltraTech, ACC, Ambuja, and Dalmia Bharat, as he believes they are bound to outperform due to price increases being passed on.
India Business News: Tata Motors plans to sell a 9.9% stake in its IPO-bound subsidiary Tata Technologies to US private equity firm TPG and Ratan Tata's private endowment
TPG, which also invested in Tata Motors’ electric vehicle business, will pick up 9 percent in Tata Technologies while Ratan Tata Endowment Fund will buy rest 0.9 percent.
TPG Rise Climate will pick up about 9% stake in the transaction, which valued Tata Technologies at Rs 16,300 crore