Tata stock rallies 5% after conglomerate plans flood of IPOs
Companies whose IPOs could be in the pipeline are Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing, and Tata Batteries. The cash via stake sale and the IPOs will help the conglomerate fund its ambitious growth plans in businesses like semiconductors, electric vehicles, batteries, renewable energy, and e-commerce.
After falling non-stop for 11 consecutive sessions, shares of multibagger on Wednesday jumped about 5% to the day's high at Rs 5,940 on BSE after reports that the conglomerate is planning several IPOs in the next 2-3 years.The strategic move will help holding company Tata Sons to unlock value, fuel future growth, and provide exit options for select investors, ET reported. Companies whose IPOs could be in the pipeline are Tata Capital, Tata Autocomp Systems, Tata Passenger Electric Mobility, BigBasket, Tata Digital, Tata Electronics, Tata Housing, and Tata Batteries.
Earlier, shares like those of and Tata Chemicals were in focus as investors were expecting Tata Sons to get listed. The rally fizzled out later on after the Tatas were said to be exploring means to avoid getting listed on stock exchanges under RBI rules.
Last week, Tata Sons sold 2.43 crore shares or 0.64% equity in subsidiary (TCS) in a Rs 9,000 crore block deal.
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The cash through the stake sale and the IPOs being planned will help the salt-to-software conglomerate fund its ambitious growth plans in businesses like semiconductors, electric vehicles, batteries, renewable energy, and e-commerce.
Recently, Tata Sons' subsidiary Tata Electronics had committed to invest Rs 91,000 crore to build a semiconductor fabrication plant in Gujarat's Dholera.
With investors loving all things Tata, shares of the holding company Tata Investment have been on a winning run and have gone up over 200% in just one year although analysts have been warning against over-enthusiastic retail investors.
Tata Group is now India’s largest conglomerate with the market capitalization of its listed companies soaring to cross the Rs 30 lakh crore mark for the first time this year.
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Source: Stocks-Markets-Economic Times
