Tata Motors to IPO subsidiaries
Business-Standard: Tata Motors (NYSE: TTM) plans to launch initial public offerings (IPOs) for two of its thirty subsidiaries — HV Axels and HV Transmissions. The article states that the IPOs might generate around Rs 400 crore, if Tata Motors went for a 30 per cent dilution of its stake.
The article also states, “According to analysts, the valuation of HV Axels and HV Transmissions would be Rs 773 crore and Rs 453 crore respectively on the basis of a PE multiple of 12x in FY08. So, the listing of these companies would boost the valuation of every Tata Motors share by Rs 19 for HV Axels and Rs 11 for HV Transmissions. Tata Motors has 38.28 crore paid-up equity shares.”