Why is Tata Tech IPO a good investment opportunity?

IPO stands for Initial Public Offer. This is the process by which a company gets publicly listed. Generally, before getting listed, the company would have carried out its operations for years. Two simple ways to evaluate an IPO are to check whether the company is making net profit currently and its future prospects. Tata Tech ticks off both of these factors. It is a pure-play engineering research and development company. P/E (Price/Earning) Ratio of comparable and favorable compared to peers (KPI Tech, LTTS, Tata Elxsi) The IPO window is open from November 22nd to November 24th. Demat account holders can apply from the broker account or bank account.

The nature of an IPO is OFS (Offer for Sales). The major participant is the parent company, Tata Motors. Alpha TC Holdings and Tata Capital Growth Fund are the other companies that are selling their stakes. A fund of Rs.14250 is required to apply for one lot. Shareholders of Tata Motors may apply in the shareholder category, provided they have been holding the shares as of November 13, 2023.

Calendar: The IPO closes on November 24. Allotment process: By November 30th Listing in the stock market: December 5th Refund of money in case of non-allotment: after December 9 These dates may be slightly variable, particularly the date of allotment and refund. Retailers may have two strategies: They may trade the listing gains after listing. Market expectations are 80% to 100% gains. compared to the issue price. The second choice is to hold the stock for years as a long-term investment.