Shares of Tata Investment Corporation surged to a lifetime high on Monday, buoyed by prospects of value unlocking ahead of the initial public offering of Tata Technologies, the first by a Tata group company in nearly two decades.
While Tata Investment Corp, a listed holding company for several Tata group companies, does not directly own a stake in Tata Technologies, it owns a 0.33% stake in Tata Motors, which is Tata Technologies' parent entity.
Tata Investment shares, which have gained nearly 43% in the last four sessions, jumped 15% on Monday to close at ₹4,501.75.
«The stock is in an uptrend, but given that the support level is very far, trading could be risky in the shares,» said Sahaj Agrawal, the head of research for derivatives at Kotak Securities.
He suggests considering the shares only from a fundamental perspective.
Shares of Tata Motors have also hit their lifetime high after the announcement of Tata Technologies' IPO, which will open for subscription on Wednesday.
«Obviously there is excitement and buying around the IPO, but the stock is also low-float, and one of the triggers is also that Sebi will be releasing the new norms for delisting in the December meeting,» said Amit Kumar Gupta, the founder and chief investment advisor at Fintrekk Capital.
In August this year, the capital market regulator Securities and Exchange Board of India (Sebi), in its draft proposal, suggested a separate delisting mechanism for holding companies, which is aimed at reflecting the intrinsic valuation of these companies.
The regulator has proposed that investment holding companies can transfer shares of the companies that it is holding to its public shareholders, and public shareholders' shares in the holding company will