Tata Motors shares hit 52-week high ahead of Tata Tech listing

Tata Motors shares continued their rally on Thursday, with the scrip rising 2.09% to ₹712.15 as its subsidiary Tata Technologies Ltd gears for public listing on November 30, 2023. Shares opened a gap up at ₹701.20 and surged to an intra-day high at ₹714.40. This marks a one-year high for the Tata group stock, taking its m-cap to ₹2,36,618.84 crore. Tata Motors shares had surged 4% on Tuesday.

Shares of the passenger cars and commercial vehicles company has surged 62.09% in the past year and has seen an 80.38% rise in the year-to-date period. In the six-month period, the stock has risen 37.27%.

Tata Motors' engineering arm Tata Technologies launched its initial public offer (IPO) on November 22. Amid strong demand for its shares, the company is expected to debut on the bourses on November 30, 2023. Tata Motors owns a 74.69% stake in Tata Tech.

In a stock exchange filing today, Tata Motors said Tata Technologies Ltd on November 28 has approved the transfer of 60,850,278 equity shares to various investors who successfully subscribed in the IPO, of which 46,275,000 equity shares were offered for sale by the company, 9,716,853 equity shares were offered for sale by Alpha TC Holdings Pte. Ltd. and 4,858,425 were offered for sale by Tata Capital Growth Fund I.

"As a result of the above, the company’s shareholding in Tata Technologies Ltd stands reduced from 64.79% to 53.39% (i.e., from 262,844,816 to 216,569,816 Equity Shares), of the issued and paid-up Equity Share capital of Tata Technologies Limited."

The offer price was ₹500 per equity share of Tata Technologies, aggregating to ₹2,313.7 crore for 46,275,000 shares offered by the company in the IPO.

Last week's high and low of the scrip stood at ₹714.40 and ₹671.50, respectively. The promoters holding in the company stood at 46.38%, while institutions and non-institutions held 35.92% and 17.70%, respectively.

Tata Motors has also launched its fourth Registered Vehicle Scrapping Facility (RVSF) in Chandigarh. Named ‘Re.Wi.Re – Recycle with Respect,’ the facility was unveiled by Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

The state-of-the-art facility uses environmentally friendly processes and has the capacity to disassemble 12,000 end-of-life vehicles safely and sustainably, each year. The RVSF is developed and operated by Tata Motors’ partner Dada Trading Company and is equipped to scrap both passenger and commercial vehicles.

"The establishment of the fourth such facility is a testament to our relentless pursuit of reducing carbon emissions, promoting a circular economy and cultivating a culture of recycling. By encouraging vehicle owners to retire their older, more polluting commercial and passenger vehicles, we are taking a monumental leap towards a more sustainable future," Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

In the July-September quarter, the company’s consolidated net profit stood at ₹3,764 crore as against the loss of ₹945 crore in the year-ago period. The revenue from operations of the maker of Nexon and Harrier surged 32% year-on-year to ₹1.05 lakh crore in the September quarter as against ₹79,611 crore in the same period last year mainly on account of improved JLR sales.