Tata Investment Corporation Ltd’s shares rose 10.33 percent on Tuesday, reaching a high of Rs 6,343.80. Today’s massive jump in share price occurred when Tata Capital authorized a proposal to go public. The board of Tata Capital has approved the company’s plans to undertake an initial public offering (IPO). The non-banking financial corporation (NBFC) will purportedly issue 23 crore additional shares under the new approach. Tata Sons owns 92.8 percent of Tata Capital. Tata Sons owns around 68 percent of Tata Investment. The company is also a non-bank entity registered with the Reserve Bank of India (RBI) under the ‘Investment Company’ category.
Tata Capital must list on stock markets by September of this year under RBI norms for “upper layer” non-banking financial entities. It would be the Tata Group’s first initial public offering since Tata Technologies went public in November 2023.
“Tata Investment, which owns shares in many Tata financial businesses, is frequently mentioned whenever there is news of a group’s firm becoming listed. Tata Capital’s IPO is now generating attention. Investors might consider taking some profits off the table,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. Technically, Tata Investment shares rose above the 5-day, 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs) but fell below the 100-day, 150-day, and 200-day SMAs. The stock’s 14-day relative strength index (RSI) was at 57.43. A level less than 30 is regarded as oversold, whereas a value over 70 is considered overbought.
“Support on the counter would be Rs 5,750, with resistance at Rs 6,500. A convincing rise over Rs 6,500 might spark a fresh rally above Rs 6,750. Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, predicted a short-term trading range of Rs 5,500 to Rs 6,750. According to BSE, the company’s stock has a price-to-equity (P/E) ratio of 102.95 and a price-to-book (P/B) value of 0.80. Earnings per share (EPS) was at 55.85, with a return on equity (ROE) of 0.78.
