According to the 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 percent dilution of its stake.
The article also states that:
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.
In other news, MyIris is reporting that Tata has acquired a truck assembly unit from Nissan Motor (OTCPK:NSANY) in Rosslyn, South Africa for Rs 210 million. The plant will help Tata Motors cater to its African markets for trucks. Tata Motors currently sells 1,500 vehicles a month in South Africa.
It’s pretty obvious that Tata Motors considers Africa to be a important market and this is a step to continue expansion in the region. The stock has been on the upward move again recently.
TTM 1-yr chart: