Tata Technologies IPO: Launching Soon with Rs 3,042 Crore Offer; 10 Key Insights for Investors

Mumbai, November 16, 2023: Tata Technologies, a subsidiary of Tata Motors, is all set to launch its highly anticipated initial public offering (IPO) on November 22, 2023. The company aims to raise Rs 3,042.51 crore through the IPO at the upper price band of Rs 500 per share. Here are 10 key things investors should know before subscribing to this Rs 3,042 crore issue:

Also See: Tata Technologies IPO GMP

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1) IPO Dates:

2) Price Band:

  • The price band for the Tata Technologies IPO has been set at Rs 475 to Rs 500 per share. This values the company at Rs 20,283 crore at the upper price band.

3) Offer Details:

  • The IPO comprises only an offer-for-sale (OFS) by the promoter and investors.
  • Tata Motors, the promoter, will sell 4.62 crore equity shares worth Rs 2,314 crore.
  • Investors Alpha TC Holdings Pte Ltd will sell 97.17 lakh shares worth Rs 486 crore.
  • Tata Capital Growth Fund I will sell 49 lakh shares worth Rs 243 crore.
  • The company has reserved 20.28 lakh shares for its employees and 60.85 lakh shares for Tata Motors shareholders.
  • The net issue is the IPO size excluding shares reserved for employees and Tata Motors shareholders.
  • The anchor book will open on November 21.

Also See: Tata Tech Stuns Investors with IPO Price Band at 47% Discount to Unlisted Market Value

4) Objectives of Issue:

  • Since it’s an offer-for-sale, Tata Technologies will not receive any funds from the IPO; all proceeds will go to the selling shareholders.

5) Lot Size:

  • The minimum lot size is 30 equity shares, and thereafter in multiples of 300 shares.
  • Retail investors will need a minimum investment of Rs 14,250 at the lower price band and Rs 15,000 at the upper price band.

Also Read: Tata Technologies IPO: Financials, shareholding, comparison with peers in 3 charts

6) Company Profile:

  • Tata Technologies is a global engineering services company offering product development and digital solutions to OEMs and their tier 1 suppliers, primarily focused on the automotive industry.
  • The company also provides education solutions in manufacturing skills through its iGetIT platform.

7) Financials:

  • In the fiscal year ended March 2023, Tata Technologies reported a 42.8% YoY growth in consolidated net profit at Rs 624 crore and a 25% rise in revenue from operations at Rs 4,414.2 crore.
  • For the six-month period ending September 2023, profit surged 36% to Rs 351.9 crore, and revenue increased by 34% to Rs 2,526.7 crore compared to the same period in the previous year.

8) Lead Managers:

  • The book-running lead managers for the IPO are JM Financial, Citigroup Global Markets India, and BofA Securities India.
  • Link Intime India is the registrar.

9) Risks:

  • The company faces risks related to revenue concentration from top customers, client concentration in the automotive segment, dependence on new energy vehicle companies, and negative cash flows.

10) Listing Date:

  • Trading of Tata Technologies’ shares on the stock exchanges is expected to commence on December 5, 2023, as per the IPO schedule.

Investors are advised to carefully consider these factors and conduct thorough due diligence before subscribing to Tata Technologies’ IPO, which promises to be one of the most significant listings of the year in the Indian stock market.

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