New Delhi: The much-awaited initial public offering (IPO) of Tata Technologies, which specializes in engineering and product development digital services, was fully subscribed within minutes of opening on Wednesday. This is the first sign IPO From the Tata Group in almost two decades, Tata Consultancy Services was the last group company to go public in 2004.
Stock exchange data shows investors oversubscribed the IPO by 2.89 times as they bid for over 130.3 million shares compared to 45 million shares on offer.
This year, Indian IPOs have set new benchmarks domestically and internationally, with 194 companies launching share offerings. The surge coincides with the Indian equity market reaching unprecedented highs, driven by promising economic growth and a large consumer market. These factors have made India a highly attractive destination for both companies and investors looking to go into the public sector.
The gray market indicates potential listing gains of around 70%, leading many brokerage firms to advise investors to subscribe to the issue, hoping to benefit from both initial listing gains and long-term investment returns.
The non-institutional investors segment saw a subscription rate of 2.72 times, while the quota for qualified institutional buyers (QIBs) was subscribed 1.98 times. Retail individual investors (RIIs) participated enthusiastically, with their shares subscribed 1.63 times.
On Tuesday, Tata Technologies, a subsidiary of Tata Motorsannounced that it has raised Rs 791 crore from anchor investors. The IPO, priced at Rs 475-500 per share, is scheduled to close on November 24.
This public offering is an offer for sale (OFS) of entirely up to 6.08 crore equity shares. As part of the OFS, Tata Motors will sell 4.63 crore shares representing 11.4% stake. Private equity firm Alpha TC Holdings is set to sell 97.17 lakh shares (2.4% stake), and Tata Capital Growth Fund I will sell 48.58 lakh shares, accounting for 1.2% of the shareholding.
JM Financial, Citigroup Global Markets and BofA Securities are acting as book-running lead managers for the IPO.
Equity shares of Tata Technologies are expected to be listed on both BSE and NSE.
(with inputs from agencies)
Stock exchange data shows investors oversubscribed the IPO by 2.89 times as they bid for over 130.3 million shares compared to 45 million shares on offer.
This year, Indian IPOs have set new benchmarks domestically and internationally, with 194 companies launching share offerings. The surge coincides with the Indian equity market reaching unprecedented highs, driven by promising economic growth and a large consumer market. These factors have made India a highly attractive destination for both companies and investors looking to go into the public sector.
The gray market indicates potential listing gains of around 70%, leading many brokerage firms to advise investors to subscribe to the issue, hoping to benefit from both initial listing gains and long-term investment returns.
The non-institutional investors segment saw a subscription rate of 2.72 times, while the quota for qualified institutional buyers (QIBs) was subscribed 1.98 times. Retail individual investors (RIIs) participated enthusiastically, with their shares subscribed 1.63 times.
On Tuesday, Tata Technologies, a subsidiary of Tata Motorsannounced that it has raised Rs 791 crore from anchor investors. The IPO, priced at Rs 475-500 per share, is scheduled to close on November 24.
This public offering is an offer for sale (OFS) of entirely up to 6.08 crore equity shares. As part of the OFS, Tata Motors will sell 4.63 crore shares representing 11.4% stake. Private equity firm Alpha TC Holdings is set to sell 97.17 lakh shares (2.4% stake), and Tata Capital Growth Fund I will sell 48.58 lakh shares, accounting for 1.2% of the shareholding.
JM Financial, Citigroup Global Markets and BofA Securities are acting as book-running lead managers for the IPO.
Equity shares of Tata Technologies are expected to be listed on both BSE and NSE.
(with inputs from agencies)
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