BENGALURU, Nov 16 (Reuters) – India’s Tata Technologies set a value band of 475-500 rupees per share for its preliminary public providing, per a time period sheet and newspaper ad on Thursday, valuing the primary Tata Group firm to go public in practically twenty years at roughly $2.5 billion.

India has had a document 194 IPOs to date this 12 months, throughout which the inventory market has hit document highs because the nation’s financial development prospects and an enormous client base make it a sexy prospect for firms and traders.

Tata Technologies, which gives engineering and know-how companies to auto, aero and heavy equipment makers, might be value 202.83 billion rupees on the higher finish of the value band, lower than most of its friends.

However, it’s pretty valued on a price-to-earnings (PE) foundation, stated analysts.

“They seem to have got the math right with respect to the IPO price band,” stated Arun Kejriwal, founding father of Kejriwal Research and Investment Services.

Kejriwal estimates Tata Technologies’ PE is 30-32, whereas its friends similar to fellow Tata group agency Tata Elxsi, KPIT Technologies (KPIE.NS) and L&T Technology Services (LTEH.NS) have a PE of 38 to 100.

Tata Technologies was in talks with Morgan Stanley Investment Management, Blackrock and a few U.S. hedge funds to spend money on its IPO at a $2.5 billion valuation, Reuters reported final week.

Tata Motors (TAMO.NS) and different shareholders will sell as much as 60.9 million shares within the IPO, which might be open for bids from Nov. 21-24. The firm will make its buying and selling debut on Nov. 30.

The final Tata group firm to go public was Tata Consultancy Services (TCS.NS) in 2004. It is now the nation’s high IT companies agency.

Tata Technologies’s consolidated revenue jumped about 36% to three.52 billion rupees within the half-year ended Sept. 30, whereas its income rose practically 34%.

BofA Securities India and JM Financial are the lead managers for the IPO.
($1 = 83.2330 Indian rupees)

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