![]() Why are such massive resources dedicated to stock buybacks? Because stock-based instruments make up the majority of executives’ pay, and buybacks drive up short-term stock prices. That left little to fund productive capabilities or better incomes for workers. Dividends absorbed an extra 37% of their earnings. During that period, they used 54% of their earnings-a total of $2.4 trillion-to buy back their own stock. Take the 449 firms in the S&P 500 that were publicly listed from 2003 through 2012. One of the major causes: Instead of investing their profits in growth opportunities, corporations are using them for stock repurchases. While the top 0.1% of income recipients reap almost all the income gains, good jobs keep disappearing, and new ones tend to be insecure and underpaid. ![]() Livemint tops charts as the fastest growing news website in the world □ Click here to know more.Though corporate profits are high, and the stock market is booming, most Americans are not sharing in the economic recovery. We advise investors to check with certified experts before taking any investment decisions. These do not represent the views of Mint. Proceeds from the fresh issue component will be used for payment of debt and for purchase of equipment and civil work required for expansion in capacity of automotive oil at Silvassa plant.ĭisclaimer: The views and recommendations given in this article are those of individual analysts. Those offering shares in the OFS include promoters Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh and other shareholders, Fleet Line Shipping Services LLC, IDFC First Bank Limited, Denver Bldg Mat & Décor TR LLC and Green Desert Real Estate Brokers. The IPO comprises fresh issue of equity shares worth ₹357 crore and an offer for sale (OFS) of 1.2 crore by promoters and existing shareholders, according to the draft red herring prospectus (DRHP). So, the grey market is signaling big profit for the Tata Motors from this IPO because the IPO is purely an OFS. As per the market observers, Tata Technologies share price is around ₹850 in unlisted market whereas as Tata Motors had bought its stake in the company paying ₹7.40 per share. Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 per cent) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.20 per cent).Īfter submission of DRHP at SEBI on 9th March 2023, SEBI has given its nod to the Tata Technologies IPO. Under the OFS, Tata Technologies' parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company. ![]() Tata Technologies is purely an offer for sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60 per cent of its paid-up share capital, according to the Draft Red Herring Prospectus (DRHP) filed in March. Last week, Tata Technologies Ltd received SEBI's nod for the launch of its public issue. For those who missed to buy the scrip earlier, they can also buy Tata Motors shares at current market price for ₹625 apiece levels maintaining stop loss at ₹570 levels." Those who have this stock in portfolio may further hold the scrip for near term target of ₹625 maintaining stop loss at ₹570. Now market is awaiting Tata Technologies IPO launch and price band announcement by the company."Īdvising 'buy and hold' strategy in regard to Tata Motors shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Tata Motors share has support placed at ₹570 and it is looking bullish on chart pattern. Therefore, market is highly bullish on Tata Motors after SEBI's nod to Tata Technologies IPO as the public issue has move one more step close to the IPO launch. Tata Motors being one of the promoters who have offered their shares for sale in this IPO, is expecting to benefit from this IPO. This means net proceeds of the public offer will go to its promoters. On reason for market going bullish on Tata Motors shares after SEBI nod to Tata Technologies IPO, Avinash Gorakshkar said, "Tata Technologies IPO is mix of OFS and fresh issue where Tata Motors is one of the shareholders offering shares in OFS.
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