Tata Technologies IPO: Key Details and Investor Enthusiasm

Tata Technologies IPO: Key Details and Investor Enthusiasm

VoM News Desk | November 16, 2023 | 10:09 AM IST | Breaking News | Follow on Google News

Tata Technologies IPO: Key Details and Investor Enthusiasm

Tata Technologies IPO: Key Details and Investor Enthusiasm

Tata Technologies, a prominent player in the technology sector, is set to open its Initial Public Offering (IPO) on Wednesday, November 22, and will continue till Friday, November 24. The price band for the IPO has been set between ₹475 to ₹500 per equity share, with a face value of ₹2 each. This offering includes a range of ₹237.50 to ₹250 times the face value of the equity shares.

Financials and Lot Size

The Price to Earnings (P/E) ratio at the upper end of the price band stands at 32.53 times, based on the diluted Earnings Per Share (EPS) for the financial year 2023, and 30.90 times at the lower end. Investors can bid for the IPO in lot sizes of 30 equity shares, and in multiples thereafter.

Subscription Timeline and Allotment Process

The allocation for anchor investors is scheduled for Tuesday, November 21. The basis of allotment for the IPO is tentatively set to be finalized on November 30, with refunds initiated on December 1. The shares are expected to be credited to allottees’ demat accounts by December 4. The IPO shares are likely to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 5. The dates may be preponed if the company opts for the T+3 norm.

Investor Categories and Reservation

The IPO has allocated not more than 50% of the public issue for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and at least 35% for Retail Investors. An employee reservation portion includes up to 2,028,342 equity shares, and a portion reserved for Tata Motors Ltd shareholders comprises up to 6,085,027 equity shares.

IPO Size and Objective

The objective of the IPO, which is expected to raise ₹3,042.51 crore at the upper end of the price band, is to facilitate an Offer For Sale (OFS) of up to 60,850,278 equity shares. This includes shares from the company, Alpha TC Holdings Pte. Ltd., and Tata Capital Growth Fund I.

Grey Market Premium and Investor Interest

The IPO’s Grey Market Premium (GMP) stands at +298, indicating strong investor interest and a potential listing price of ₹798 per share, a significant premium over the IPO price. The enthusiasm among investors suggests a high level of confidence in Tata Technologies’ market prospects.

VoM News Desk

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