The shares of Tata Motors gained on Wednesday after Tata Technologies, an arm of Tata Motors received capital market regulator Sebi's approval to raise funds through initial public offerings. The shares of Tata Motors opened the day at Rs 579.95 up by close to one per cent and then rose to Rs 585.70 with a gain of 2.21 per cent.
As per the draft papers, Tata Technologies' IPO 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.
Under the OFS, Tata Technologies' parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company.
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).
The size of the IPO and the price band is yet to be disclosed.
Shares of the companies will be listed on the BSE and NSE.
