Tata Investment jumps ~5% as conglomerate announces several IPOs

27 Mar 2024 , 02:20 PM

After declining for 11 straight sessions, shares of multi-bagger Tata Investment Corporation rose almost 5% to the day’s high of ₹5,940 on the BSE on Wednesday, after news surfaced that the conglomerate is preparing numerous IPOs over the next 2-3 years.

According to reports, the strategic action would enable Tata Sons unlock wealth, fuel future growth, and give exit choices for chosen investors. Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing, and Tata Batteries are among the companies that may issue initial public offerings.

Previously, Tata Group shares such as Tata Investment and Tata Chemicals were under focus because investors expected Tata Sons to get listed. The euphoria faded later on as the Tatas were reported to be looking for ways to avoid being listed on stock exchanges under RBI restrictions.

Tata Sons sold 2.43 crore shares, or 0.64% stake in Tata Consultancy Services (TCS), in a block sale worth ₹9,000 Crore last week.

The proceeds from the stock sale and upcoming IPOs would enable the salt-to-software conglomerate to fund its ambitious expansion goals in industries like as semiconductors, electric vehicles, batteries, renewable energy, and ecommerce.

Tata Electronics, a subsidiary of Tata Sons, recently announced a ₹91,000 Crore investment to develop a semiconductor fabrication unit in Dholera, Gujarat.

Shares of Tata Investment, the holding firm, have been on a winning streak, rising more than 200% in only one year, despite experts warning against too optimistic retail investors.

Tata Group is now India’s largest conglomerate, with the market valuation of its listed firms surging beyond ₹30 Lakh Crore for the first time this year.

At around 2.11 PM, Tata Investment was trading 5% higher at ₹5,946.65 per piece, against the previous close of ₹5,663.50 on NSE.

For feedback and suggestions, write to us at [e-mail]