Tata Technologies IPO: The highly anticipated initial public offering (IPO) of Tata Technologies has garnered significant attention in the market.
Valued at ₹3,042.51 crore, the IPO subscription window was open from November 22 to 24, drawing remarkable interest from investors.
Tata Technologies IPO Subscription Details
During the subscription period, the IPO witnessed an overwhelming response, with a subscription rate of 69.43 times.
This exceptional demand signifies strong investor confidence in Tata Technologies.
Qualified Institutional Bidders (QIBs) oversubscribed their portion by an impressive 203.41 times, showcasing institutional interest.
Non-institutional investors and retail investors also exhibited robust enthusiasm, subscribing 62.11 times and 16.5 times, respectively.
Moreover, both employees and other categories displayed notable subscription figures during this period.
Checking Allotment Status
Investors eagerly await the finalization of the allotment status on November 28.
They can easily check their allotment status through the BSE website by following a step-by-step guide.
Additionally, Link Intime’s website offers a similar facility to verify allotment status by entering specific details.
IPO Structure and Offer for Sale (OFS)
The IPO constitutes an offer for sale (OFS) of 6.09 crore equity shares, with Tata Motors planning to sell 4.62 crore equity shares worth ₹2,313.75 crore.
Investors Alpha TC Holdings Pte Ltd. and Tata Capital Growth Fund I aim to offload 97.17 lakh shares and 48.58 lakh shares, respectively, in this offering.
Company Profile and Financial Performance
Tata Technologies, a subsidiary of Tata Motors, primarily focuses on pure-play manufacturing-focused Engineering Research & Development (ER&D) services.
Its financial performance from March 2022 to March 2023 showcased a commendable rise in revenue of 25.81 percent and a 42.8 percent increase in profit after tax (PAT).
Analyst Ratings and Market Sentiment
Market analysts have expressed optimism about Tata Technologies’ IPO, citing reasons such as improving financials, a strong brand legacy, and reasonable valuations.
Geojit Financial Services, in particular, recommended a “Subscribe” rating, highlighting the company’s favorable price-to-earnings ratio (P/E) of 28.8x (FY24E annualized EPS) compared to its peers.
Grey Market Premium (GMP)
The IPO’s grey market premium (GMP), an indicator of unlisted market performance, has been bullish at ₹414.
This figure, representing a potential 83 percent premium listing at ₹914, reflects positive market sentiment.
However, it’s essential to note that GMP is dynamic and subject to quick changes.
Tata Technologies’ IPO has generated significant excitement and investor confidence, as evidenced by the overwhelming subscription figures.
With the anticipated listing date of November 30, investors eagerly await the outcome of this IPO, positioning Tata Technologies for a promising future in the market.