Tata Technologies Limited’s unlisted share price jumped by 30% in the first week of 2023, after the company announced it would issue an initial public offering. The Tata Technologies share prices climbed from Rs 5,500 per equity share to Rs 7,300 per equity share in the unlisted markets. The company provides engineering and design services to the automotive, aerospace, and industrial machinery sectors. Tata Motors’ subsidiary, Tata Technologies, has been ruling the market due to its reliable performance, impressive financials, consistent growth, and Ratan Tata’s (chairman of Tata Group) trust. The demand for Tata Technologies unlisted shares is increasing as the company plans for an initial public offering (IPO). Being an investor, it is the right time to invest in Tata Technologies unlisted shares and diversify your investment portfolio. This blog will discuss the bonus issue, the stock split in Tata Technologies, and its IPO details.
The Bonus Issue And Stock Split In Tata Technologies Limited
Before knowing the bonus issue and stock split in Tata Technologies Limited, let's quickly understand what these terms mean.
What is a bonus issue?
A bonus issue is a way of rewarding existing shareholders by issuing them additional shares for free. The company does not receive any money from the bonus issue, but it increases its share capital and the number of outstanding shares. The bonus issue does not change the total value of the company or the shareholders' stake, but it reduces the price per share and makes it more accessible to small investors.
For example, if a company has 100 shares outstanding with a face value of Rs 10 each and a market price of Rs 1000 each, its total share capital is Rs 1000 (100 x 10), and its market capitalisation is Rs 1 lakh (100 x 1000). If the company announces a bonus issue of 1:1, every existing shareholder will get one additional share for every share they own. After the bonus issue, the company will have 200 shares outstanding with a face value of Rs 10 each and a market price of Rs 500 each (assuming no change in demand and supply). The total share capital will remain Rs 1000 (200 x 5), and the market capitalisation will remain Rs 1 lakh (200 x 500). However, the price per share will become more affordable for new investors.
What is a stock split?
A stock split is another way of reducing the price per share and increasing the liquidity of the shares. Unlike a bonus issue, a stock split does not increase the share capital or the number of outstanding shares but changes the face value and the market price of each share. The stock split does not affect the total value of the company or the shareholders' stake, but it makes the shares more divisible and tradable.
For example, if a company has 100 shares outstanding with a face value of Rs 10 each and a market price of Rs 1000 each, its total share capital is Rs 1000 (100 x 10), and its market capitalisation is Rs 1 lakh (100 x 1000). If the company announces a stock split of 5:1, it means that every existing share will be divided into five new shares with a lower face value and market price. After the stock split, the company will have 500 shares outstanding with a face value of Rs 2 each and a market price of Rs 200 each (assuming no change in demand and supply). The total share capital will remain Rs 1000 (500 x 2), and the market capitalisation will remain Rs 1 lakh (500 x 200). However, the price per share will become more affordable for new investors.
The Tata Technologies board announced ahead of the IPO that the company would issue a bonus share for every share held and set January 16 as the record date for the bonus issue. Furthermore, the company also announced a stock split of 5:1. This means that after these corporate actions, each existing share of Tata Technologies with a face value of Rs 10 will be converted into 10 new shares with a face value of Rs 2 each.
These actions are expected to make Tata Technologies' shares more attractive for its IPO, which is likely to happen soon. Tata Motors, which owns about 72% stake in Tata Technologies, said in December; it was exploring a partial divestment in the company through an IPO. As one of the blue-chip stocks in the unlisted space, Tata Technologies seems to be a more attractive investment than the new-age and loss-making businesses that are popular with investors.
Tata Technologies Limited Unlisted Shares Details:
The details of Tata Technologies Limited unlisted shares are as follows -
| Total available shares | 1000 |
| Face value | ₹ 2 per equity share |
| ISIN | INE142M01025 |
| Lot size | 50 shares |
| Current unlisted share price | ₹ 880 per equity share |
| Market cap | ₹ 36581 crore |
| 52W high | ₹ 925 per equity share |
| 52W low | ₹ 450 per equity share |
| Stock P/E | 83.7 |
| Book Value | ₹ 54.5 |
| EPS | 10.45 |
Tata Technologies IPO Offerings
Tata Technologies has been performing well in terms of revenue and profitability. The company reported a revenue of Rs 3,021 crore and a net profit of Rs 581 crore for FY21. Furthermore, the company's total revenue was Rs 3,578 crore in FY22 and Rs 3,052 crore during the first nine months of FY23. The company has also expanded its global presence and acquired new businesses in various sectors. Tata Technologies has been involved in some prestigious projects, such as designing electric vehicles for Jaguar Land Rover, developing aircraft components for Airbus and Boeing, and creating digital solutions for Caterpillar and John Deere. The expansion and increasing revenue of the company signify its growth and potential investors can benefit from this wonderful opportunity by investing in Tata Technologies shares.
On March 10, 2023, Tata Motors subsidiary, Tata Technologies, filed draft papers with SEBI for an initial public offering (IPO). The engineering and design arm of Tata Group, Tata Technologies, is executing to sell over Rs 9.57 crores of equity shares or 23.6% stake via offering. According to Business Today, traders who buy and sell unlisted shares of Tata Technologies said that the stocks are selling at Rs 750-800 per equity share, which was earlier sold at Rs 400 per equity share. Last year, Tata Technologies unlisted shares gained a hike of 100% from their initial value. The jump in the value of unlisted shares creates a wonderful opportunity for investors to trade for Tata Technologies unlisted shares and earn multi-bagger returns.
How Can You Benefit From Tata Technologies Unlisted Shares?
Tata Technologies IPO will be soon open for everyone, but as the announcement is made, the prices of unlisted shares of the company are continuously growing rapidly. How can you leverage this opportunity? Simple! Invest in Tata Technologies unlisted shares and enjoy high returns. Investing in unlisted shares is the best way to get shares at negotiable prices and diversify the risks associated with trading.
But how to begin with investment? Use Stockify - A reliable online trading platform for buying and selling unlisted, delisted, and pre-IPO shares and ESOPs. Moreover, you will also get accurate financial data on unlisted companies and IPO details. What are you waiting for? Connect with the expert brokers of Stockify and begin your investment journey with us. Connect with us!
FAQs
Q1 - How can I buy Tata Technologies unlisted shares?
Ans - You can use Stockify - India’s leading online trading platform, to buy and sell Tata Technologies unlisted shares.
Q2 - Will I get bonus shares from Tata Technologies Limited?
Ans - You are eligible for Tata Technologies bonus shares if you are a shareholder on the record date, i.e., January 16, 2023.
Q3 - Is buying and selling Tata Technologies Limited unlisted shares legal in India?
Ans - Yes, unlisted stock trading is completely legal in India. For more information about buying and selling unlisted stocks, you can consult with the expert traders at Stockify.
Q4 - If I buy Tata Technologies unlisted shares now, will I get bonus shares?
Ans - No, the last date for holding the stake and getting bonus shares was January 16, 2023. Any investments made after January 16, 2023, are not eligible for the bonus.
Q5 - What is the price of Tata Technologies unlisted shares today?
Ans - The current price of Tata Technologies unlisted shares is ₹ 880 per equity share. To know the unlisted share prices and other financial data in real time, use Stockify.
