Tata Technologies upcoming IPO: A Potential Wealth Creator for investors, Says Ambareesh Baliga
Introduction
The upcoming initial public offering (IPO) of Tata
Technologies, a global engineering services company, has the potential to be
the next wealth creator for investors, according to market expert Ambareesh
Baliga. In an exclusive interview with Business Today, Baliga expressed his
optimism about the IPO, stating that it is likely to receive a strong response
from investors regardless of market conditions.
Key
Details
1.
Positive Investor Sentiment: Baliga believes that
the IPO of Tata Technologies is eagerly anticipated by investors, and there has
been significant buzz surrounding it. He expects a strong demand for the Tata
Group firm, even if there is some market correction.
2.
Shareholder Quota: Tata Motors shareholders have the
opportunity to apply for a reserved quota of shares in the IPO. Baliga suggests
that investors should consider buying Tata Motors shares to apply for this
quota, as it can be a sensible approach to becoming a shareholder of Tata
Technologies. He also mentions that a person can submit two applications, one
as a shareholder and another as a regular investor.
3.
Wealth Creation Potential: Baliga highlights the impressive
track record of wealth creation by Tata Group stocks and expresses his
confidence that Tata Technologies will follow suit. He advises investors to
adopt a long-term perspective when investing in the IPO, potentially holding
the shares for five to ten years.
4.
Differentiation from Other Tata Group Companies:
Baliga emphasizes that Tata Technologies should not be directly compared to
other Tata Group companies like Tata Consultancy Services (TCS) or Tata Elxsi.
Each of these companies operates in different niches within the technology sector.
5.
Reservation of Shares: The IPO will reserve 50% of the net offer for qualified
institutional bidders, while non-institutional
investors and retail investors will receive 15% and 35%, respectively.
Conclusion
The Tata Technologies IPO is generating significant
interest among investors due to its potential as a wealth creator. Baliga's
positive outlook, considering the strong response anticipated from investors,
supports the belief that the IPO will be a success. With reservation for Tata
Motors shareholders and the company's focus on product development and digital
solutions in the automotive and aerospace sectors, Tata Technologies presents a
unique investment opportunity. However, it is important for investors to
conduct their due diligence and seek advice from a qualified financial advisor
before making decisions related to the IPO.