The company works with its customers to develop products that improve the quality of life for its end users and are safer and cleaner, all to create value for them. The company serves clients in related industries, including aerospace, transportation and heavy construction machinery, leveraging its deep domain expertise in the automotive sector.
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.
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From the end of the fiscal year on March 31, 2023 to March 31, 2022, Tata Technologies Limited’s revenue climbed by 25.81%, while its profit after tax (PAT) increased by 42.8% , according to reports.
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Tata Tech continues to receive a significant portion of its revenue from its five major customers, which include Tata Motors Limited and some of its subsidiaries, as well as Jaguar Land Rover Limited, based on revenue generated in each of the six-month periods ended September. 30, 2023, and September 30, 2022, as well as for Fiscals 2023, 2022, and 2021.
One of the company’s greatest risks, according to RHP, is that its revenues could decline if any or all of its Top 5 Customers saw a decline in their business, decided to cease doing business, or significantly reduced their dealings with the company. This could have a material adverse effect on their business, operating results, cash flows and financial condition.
Also Read: Tata Technologies IPO to open on November 22, price band set at ₹475-500 per share
Here are the 10 key things to know about Tata Tech IPO;
Tata Technologies IPO Date: Tata Technologies IPO subscription date is scheduled on Wednesday, November 22, and closes on Friday, November 24.
Tata Tech IPO price band: Tata Technologies IPO price band has been set in the range of ₹475 to ₹500 per equity share of face value of ₹2.
Size of Tata Technologies IPO: Tata Technologies IPO lot size is 30 equity shares and in multiples of 30 equity shares thereafter.
Tata Technologies IPO anchor investors: The allotment to anchor investors for Tata Technologies IPO is scheduled to take place on Tuesday, November 21.
Tata Tech IPO Details: At the upper end of the price band, Tata Tech IPO is expected to rise ₹3,042.51 crores. This IPO is an Offer For Sale (OFS) of up to 60,850,278 equity shares for cash, consisting of an offer for up to 46,275,000 equity shares of the company; to 9,716,853 equity shares of Alpha TC Holdings Pte. Ltd.; and up to 4,858,425 equity shares of Tata Capital Growth Fund I, each representing up to 11.41%, 2.40% and 1.20% respectively of the paid-up equity share capital of Tata Technologies Limited, the company said in an exchange filing in november 13.
Also Read: IPO Watch: 5 mainboard IPOs open next week, Tata Tech IPO, Flair IPO, IREDA IPO, among others; Everything you need to know
Tata Technologies IPO targets: The purpose of the offer is to fulfill the offer of sale of shareholders to sell up to 60,850,278 equity shares and reap the benefits of listing the equity shares in stock exchanges. In addition, the company anticipates that the proposed listing of its equity shares will improve its brand recognition and visibility and open an Indian public market for the equity shares, according to RHP.
Chief Manager and Registrar of Tata Technologies IPO: The book running lead managers of Tata Tech IPO (BRLM) are JM Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited. The subject registrar is Link Intime India Private Ltd.
Also Read: Tata Technologies IPO: GMP remains constant. Price, lot size, other details of upcoming IPO
Tata Technologies IPO listing date and allotment date: Tentatively, Tata Technologies IPO basis of allotment of shares will be finalized on Thursday, November 30 and the company will initiate refunds on Friday, December 1, while the shares will be credited to the demat account of allottees on Monday, December 4. Tata Technologies IPO shares are likely to be listed on BSE and NSE on Tuesday, December 5. In case, the company decides to switch to T+3 standard, the dates will be brought forward.
Booking on Tata Technologies IPO: 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% for Non-Institutional Investors (NII), and not less than 35% 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.
Tata Technologies IPO GMP: Tata Tech IPO GMP or gray market premium is +347. This indicated that the share price of Tata Technologies today trades at a premium of ₹347 in the gray market on Monday, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the gray market, the estimated list price of Tata Tech’s share price has been indicated at ₹847 per which is 69.4% higher than the IPO price of ₹500.
“Grey market premium” indicates the willingness of investors to pay more than the issue price.
Also Read: Tata Technologies IPO vs IREDA IPO vs Gandhar Oil Refinery IPO: Which upcoming IPO is better?
Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 22 Nov 2023, 10:47 IST