The ₹3,042.51 crore IPO was open for subscription between November 22-24 at a price band in the range of ₹475-500 per share.
The first IPO by the Tata Group in over 19 years was subscribed 69.43 times during November 22-24. It received bids for 312.64 crore equity shares as against 4.5 crore shares on the offer. The portion for qualified institutional bidders (QIBs) was booked 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 employees portion was bid 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
Tata Technology shares are likely to be listed on the bourses on Thursday, November 30.
How you can check the allotment status
1) Go to the BSE website.
2) Select ‘Equity’ and then from the dropdown, select the issue name.
3) Enter your application number and PAN card number.
4) Click on the “Search” button.
In a similar way, you can also check on its registrar’s website.
1) Go to the website of Link Intime.
2) Click on ‘Company Selection’ and then select the IPO name.
3) Now, enter your PAN, application number, DP / Client ID, or account number / IFSC.
4) Click on ‘Search’.
The status will only appear after allotment 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 after strong subscription status
Tata Technologies IPO is entirely an offer for sale (OFS) of 6.09 crore equity shares by the promoter and investors. Promoter Tata Motors will offload 4.62 crore equity shares worth ₹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 automobile 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), as per RHP.
From the end of the fiscal year on March 31, 2023, to March 31, 2022, Tata Technologies Limited’s revenue climbed by 25.81 percent, while its profit after tax (PAT) increased by 42.8 percent, as per 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 reservation portion has been allocated up to 2,028,342 equity shares, and Tata Motors Ltd shareholders have been reserved up to 6,085,027 equity shares.
Read here: Tata Technologies tops the top 5 Indian IPOs
Most analysts had a subscribe rating for the Tata Technologies IPO because of the company’s improving financials, strong brand legacy and reasonable valuations.
Geojit Financial Services believes that at the upper price band of ₹500, Tata Technologies is available at a P/E of 28.8x (FY24E annualised EPS), which appears to be reasonably priced compared to peers.
“Its strong brand legacy, extensive automotive expertise, diversified global presence and strategic partnership with industry leaders provide a distinct advantage that aligns well with its growth ambitions. Hence, we assign a “Subscribe” rating on a medium to long-term basis,” said the brokerage firm.
Tata Technologies IPO GMP today
Tata Technologies IPO grey market premium (GMP) today is ₹414, which is the same as yesterday. The IPO’s grey market sentiment has turned bullish after a strong response by investors. Ahead of Tata Technologies IPO opening date i.e. on 21st November 2023, Tata Technologies IPO GMP was 340.
Today’s GMP indicates that the Tata Technologies shares are likely to be listed at a premium of 83 percent at ₹914.
However, one must note that the grey market premium is only an indicator of how the company’s shares are performing in the unlisted market and can change quickly.
Read here: Tata Technologies IPO sets record! Attracts over 50 lakh applications on issue
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Updated: 27 Nov 2023, 09:55 AM IST