By Aayush Khanna
In a historic move, Tata Technologies, part of the esteemed Tata Group, has opened its INR 3,042.51-crore IPO for subscription—the first from the Tata conglomerate in over two decades. The offering has garnered significant interest, being oversubscribed 3.3 times, with investors snapping up 14.57 crore equity shares against the initial offer of 4.5 crore.
Notable trends in subscription data reveal robust demand from retail investors (2.87 times), high-net-worth individuals (5.17 times), and qualified institutional buyers (2.22 times). Employees and shareholders of Tata Motors (NS:) also demonstrated keen interest, subscribing 0.61 times and 4.48 times, respectively.
Tata Technologies, a Pune-based global engineering services company, specializes in providing product development and digital solutions to global original equipment manufacturers (OEMs). The IPO, set to close on 24 November 2023, comes with an offer-for-sale (OFS) structure by promoters Tata Motors and investors Alpha TC Holdings and Tata Capital Growth Fund 1.
The offering, priced in the range of INR 475-500 per share, has generated excitement in the grey market, trading at a substantial 70% premium. Market analysts, citing the company's stellar performance, industry growth potential, and the trusted Tata brand, anticipate a positive listing.
With marquee names participating in the anchor book, including Copthall Mauritius Investment, Goldman Sachs (NYSE:), and BNP Paribas (EPA:) Funds, the IPO reflects favorable valuations, strong business prospects, and a sound financial foundation, as acknowledged by leading brokerages. At the upper price band, Tata Technologies' stock is valued at a PE multiple of 32.53 of its FY23 diluted EPS, with a market capitalization exceeding INR 20,000 crore.
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Tata Technologies IPO Oversubscribed 3.3x, Signaling Strong Investor Enthusiasm - Investing.com India
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