FE
Tata Motors stands to make 68 times return on the investment it made in its subsidiary Tata Technologies in the mid-1990s making it one of its most profitable bets.
The Mumbai-based automotive giant is set to raise a little under `2,300 crore at the upper end of the price band in the initial public offering (IPO) of Tata Technologies. The IPO which opened on Wednesday in the price band of Rs 475-500 was subscribed 6.55 times on the first day.
Incorporated as Core Software Systems in 1994 before changing the name to Tata Technologies in 2001, Tata Motors had made the acquisition of shares in the company at Rs 7.4 per share. The maker of luxury Land Rover SUVs and Prima trucks is offloading 4.5 crore shares in Tata Technologies.
