Tata Tech IPO: Tata Investment share price rallies over 20% ahead of the issue next week

livemint.com:

Tata Investment Corporation rallied over 20% on Friday's trading session, touched to ₹3,909.90 per piece ahead of upcoming initial public offering (IPO) of Tata Technologies. Tata Investment shares opened ₹ 3,270 per share in the early morning trading on Friday, against previous close at ₹ 3,257 . Tata Technologies, which is all set to go public on November 22, is a subsidiary of Tata Motors in which Tata Investment is a promoter group entity.

Tata Investment is a non-banking financial company (NBFC), which is involved in long-term investments such as equity and related securities. The NBFC also owns stake in several other Tata Group companies like Tata Chemicals, Tata Consumer Products Ltd, Trent, Tata Elxsi, Tata Steel and TCS. By 12:40 pm on Friday, over 13 lakh Tata Investment shares changed hands on stock exchanges compared to the one-week average of 52,000.

Tata Investment stock has nearly gained over 80% so far this year, whereas, in last five years it has rallied over 350%. It has also recorded positive returns in seven out of eight years. As per several reports, the surge in the Tata Group's NBFC company came after it appointed new senior management personnel and general manager.

Tata Investment Corporation was promoted by Tata Sons Pvt Ltd in 1937, under the name The Investment Corporation of India Limited. Tata Technologies IPO price band has been fixed at ₹475 to ₹500 per equity share. However, since the announcement of its price band, the grey market has gone bullish on the public issue.