IPO of Tata Technologies has been finalized
According to a regulatory filing made by Tata Motors on Saturday, the Initial Public Offering (IPO) of Tata Technologies has been finalized at an offer price of Rs 500 for every equity share having a face value of two rupees.
“Alpha TC Holdings Pte. Ltd. is offering 9,716,853 equity shares worth Rs 4,858.43 million, Tata Capital Growth Fund I is offering 4,858,425 equity shares worth Rs 2,429.21 million, and the Company is offering 46,275,000 equity shares worth Rs 23,137.50 million.
The total size of the IPO is ₹30,425.14 million, subject to the finalization of the basis of allotment,” a statement from Tata Motors reads. On the last day of subscriptions on Friday, the Rs 3,042.5 crore initial public offering (IPO) of Tata Technologies, which offers digital services for engineering and product development, was subscribed 69.43 times, mostly due to the impressive involvement of institutional purchasers.
On November 22, 2023, subscriptions for the eagerly anticipated Tata Group initial public offering (IPO) commenced for three days. With no new issue component, the Tata Technologies IPO began on November 22 in the price range of Rs. 475 to Rs. 500. As of 5 PM, the offer has received strong overall subscriptions of 69.43 times, with bids totaling Rs 1.56 lakh crore for an issue size of Rs 2,200 crore, excluding the anchor part.
A staggering 203.41 times were subscribed to the amount designated for qualified institutional bidders, and 62.11 times were bid on the portion reserved for non-institutional investors. On Thursday, November 30, shares of Tata Technologies will go public on the BSE and NSE.
Engineering Research & Development (ER&D) firm Tata Technologies, a division of Tata Motors, is a pure-play manufacturing oriented organization with an emphasis on the automotive sector. As of September 30, Tata Investment Corporation, a promoter group company, held a 0.33 percent ownership in Tata Motors.
In 6MFY24, Tata Technologies generated revenue of Rs 25.23 billion, employing 12,451 people. The automotive sector accounts for over 88% of revenue and is expected to expand at a CAGR of 41% between 2021 and 2023. Regarding the issue, retail investors, workers of Tata Technologies, and owners of Tata Motors were not far behind, subscribing 16.50 times, 3.7 times, and 29.2 times, respectively.
For these subscribers, there was a thirty-five percent reservation in the net issue. Prior to its IPO on Tuesday, Tata Technologies has raised an amount of Rs 791.05 crore. HSBC Global, Florida Retirement System, Oaktree Emerging Markets Equity Fund, Brinker Capital Destinations Trust, Great Eastern Life-Singapore Life Insurance Fund, RBC Asia Pacific Ex-Japan Equity Fund, Government Pension Fund Global, BNP Paribas Funds, Prudential Assurance Company, and Copthall Mauritius Investment were some of the notable investors.
Various domestic mutual funds and insurance companies, such as SBI Mutual Fund, ICICI Prudential Mutual Fund, Nippon Life, Aditya Birla Sun Life Trustee, Franklin Templeton Mutual Fund, SBI Life Insurance Company, DSP Mutual Fund, Kotak Mutual Fund, Mirae Asset Mutual Fund, HDFC Life Insurance Company, Edelweiss Trusteeship,
Bandhan Mutual Fund, Sundaram Mutual Fund, Motilal Oswal Mutual Fund, Canara Robeco Mutual Fund, Axis Mutual Fund, Kotak Mahindra Life Insurance Company, JM Financial Mutual Fund, Bajaj Allianz Life Insurance Company, and Bharti Axa Life Insurance Company, were also involved in the anchor portion.
After signing in at the official registrar of the public offer website or the BSE website, those who applied for the public issue can check the status of their application online. The primary managers of the Tata Tech IPO are JM Financial, Citigroup Global Markets India, and BofA Securities India. Link Intime India is serving as the issue’s registrar.
According to NSE data, bids were received for 3,12,64,91,040 shares in the inaugural share sale of Tata Technologies, while the number of shares on offer was 4,50,29,207. After over 20 years, Tata Technologies is the first Tata Group firm to launch an initial public offering (IPO). The group’s final initial public offering (IPO) was Tata Consultancy Services in 2004.
The Ultimate Guide to Tata Technologies IPO: GMP, Price Band, Lot Size & Beyond
