The ₹3,042.51 crore IPO was opened for subscription between November 22-24 at a price band in the range of ₹475-500 per share.
The Tata Group’s first IPO in over 19 years was subscribed 69.43 times during November 22-24. It received bids for 312.64 crore equity shares against 4.5 crore shares on the offer. The portion for qualified institutional bidders (QIB) was reserved the most, 203.41 times.
Meanwhile, the non-institutional investors (NII) category was subscribed to 62.11 times and the retail investors’ quota was subscribed 16.5 times during the three-day bidding process. Also, the employee part was offered 3.7 times and the Others category was subscribed 29.20 times.
Read here: Tata Technologies IPO: GMP, issue details, 10 key things to know before you invest
The shares of Tata Technology are likely to be listed on the stock exchanges on Thursday, November 30.
How you can check the status of the donation
1) Go to the BSE website.
2) Select ‘Equality’ and then from the menu, select the theme name.
3) Enter your application number and PAN card number.
4) Click the “Search” button.
Similarly, you can also check on its registrar’s website.
1) Go to the Link Intime website.
2) Click on ‘Company Selection’ and then select the IPO name.
3) Now, enter your PAN, application number, DP/Customer ID, or account number/IFSC.
4) Click ‘Search’.
The status will appear only after allocation if the details are entered correctly. The equity shares are expected to be credited to the demat accounts of successful investors by November 29.
Read here: Tata Technologies IPO: GMP jumps on strong subscription status
Tata Technologies IPO is an outright offer for sale (OFS) of 6.09 crore equity shares from the promoter and investors. Promoter Tata Motors will offload 4.62 crore equity shares ₹2,313.75 crore in the OFS, while investors Alpha TC Holdings Pte Ltd will sell 97.17 lakh shares and Tata Capital Growth Fund I will offload 48.58 lakh shares in the Tata Technologies IPO.
Tata Technologies is a subsidiary of auto major Tata Motors and is a pure-play manufacturing-focused Engineering Research & Development (ER&D) company, primarily focused on the automotive industry.
The company’s listed industry peers are KPIT Technologies Ltd (with a P/E of 80.31), L&T Technology Services Ltd (with a P/E of 37.47), and Tata Elxsi Ltd (with a P/E of 61.55), according to RHP. .
From the fiscal year end March 31, 2023 to March 31, 2022, Tata Technologies Limited’s revenue climbed 25.81 percent, while its profit after tax (PAT) increased 42.8 percent , according to reports.
Tata Tech IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15 percent for Non-Institutional Investors (NII), and not less than 35 percent of the offer is reserved. for Retail Investors. The employee reserve portion was allotted up to 2,028,342 equity shares, and Tata Motors Ltd shareholders were reserved up to 6,085,027 equity shares.
Read here: Tata Technologies tops top 5 Indian IPOs
Most analysts had a subscribe rating for Tata Technologies’ IPO due to the company’s improving financials, strong brand heritage and reasonable valuations.
Geojit Financial Services believes that at the top price band of ₹500, Tata Technologies is available at a P/E of 28.8x (FY24E annualized EPS), which appears to be reasonably priced compared to peers.
“Its strong brand heritage, extensive automotive expertise, diversified global presence and strategic partnership with industry leaders provide a clear advantage that aligns well with its growth ambitions. We therefore assign a ‘Subscribe’ rating for the medium to long term,” the brokerage firm said.
Tata Technologies IPO GMP today
Tata Technologies IPO gray market premium (GMP) today is ₹414, which is the same as yesterday. The gray market sentiment of the IPO turned bullish following a strong response from investors. Before the opening date of Tata Technologies IPO ie 21st November 2023, Tata Technologies IPO GMP was 340.
Today’s GMP indicates that Tata Technologies shares are likely to be listed at a premium of 83 percent at ₹914.
However, it should be noted that the gray market premium is only an indicator of how the company’s shares perform in the unlisted market and can change quickly.
Read here: Tata Technologies IPO sets record! Attracts more than 50 lakh applications on a subject
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Updated: 27 Nov 2023, 09:55 IST