Tata Group IPO: Last year, after a wait of almost two decades, the IPO of Tata Technology of Tata Group came into the market. Investors benefited greatly from its tremendous listing. If you had missed investing money in this, then there is a good news for you. This year again an IPO of Tata Group may come in the market. According to a report by Moneycontrol, Tata Group is considering listing its auto component manufacturing business Tata Autocomp Systems (TACO) through an IPO. According to the report, in the initial phase the focus of Tata Group is on which institutions will sell their stake in TACO and the total amount of stake in the IPO. However, no official statement has been given by the company regarding this. It is expected that if the group brings IPO in the market, then like Tata Technology, it will also get enthusiasm from investors.
What does Tata Autocomp Systems do?
Let us tell you that established in the year 1995, TACO serves as the vehicle for Tata Group enterprises in the auto component sector. Tata Autocomp Systems is wholly owned by Tata group entities, in which Tata Sons holds approximately 21 percent stake. The remaining stake of the company is with Tata Industries Limited. The company produces segments including interior plastics and composites, radiators, exhaust systems, batteries, stampings, suspension, seating, mirror assemblies, EV powertrains, EV battery energy storage systems and engine cooling systems. In August 2023, the company also signed an initial agreement with the Skoda Group for the production of components for railway, metro and bus segments. Through this partnership, the auto components arm of the Tata Group aims to expand into the growing Indian railways and public mobility market. The company had made better profit in the last financial year.
what is ipo
The full name of IPO is Initial Public Offering. It is a financial process in which a private company decides to issue an offer of its stock to investors in the open market. This is the first time for the company when it goes to sell its shares in the open market. When a company issues an IPO, it publicizes its shares and gives investors the opportunity to buy its shares. Through IPO, the company makes its stock available to investors through public and news media so that they can buy it. Through IPO, the company mostly tries to attract new investors for its stock and through this the company collects most of the capital to fulfill its development and financial plans. This is an attractive option for investors because it offers them the opportunity to own a public company.
Gray market is the market for second hand IPO.
Gray market can be called in simple words the second hand market of IPO. This means that after the IPO is issued, instead of buying directly from the stock market, you buy the IPO from an investor who has already invested in the company. The biggest problem in this gray market is that the sellers, brokers and traders working in it are not registered anywhere. There are no rules and regulations in this market. Business is done only on trust and personal interaction. At the same time, if money gets stuck, you have to do the recovery yourself.