Tata Technologies IPO Price Band Set at Rs 475-500 Per Share

Mumbai- Tata Technologies, a subsidiary of Tata Motors, has announced its plans to launch its initial public offering (IPO) with a price band set at Rs 475-500 per share. This marks a significant milestone as it is the first IPO from the Tata Group in nearly two decades, with the last being Tata Consultancy Services in 2004.

Also See: Tata Technologies IPO GMP

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The public issue is scheduled to open on November 22 and will close on November 24. Prior to the opening of the IPO, an anchor book will be opened for a day on November 21, allowing select institutional investors to participate.

Tata Technologies aims to raise a total of Rs 3,042.51 crore through this IPO at the upper price band. It’s important to note that the IPO comprises only an offer-for-sale (OFS) by the promoter and investors, with no fresh issue component. Promoter Tata Motors will offload 4.62 crore equity shares worth Rs 2,313.75 crore in the OFS, while investors Alpha TC Holdings Pte Ltd will sell 97.17 lakh shares worth Rs 485.84 crore, and Tata Capital Growth Fund I will sell 48.58 lakh shares worth Rs 242.92 crore. Consequently, the company will not receive any capital from this offering.

Also See: Tata Technologies to Go Public on November 22, Marking a Milestone for Tata Group

Tata Technologies has reserved 20.28 lakh shares for its employees and 60.85 lakh shares for the shareholders of Tata Motors. Therefore, the IPO, excluding shares reserved for employees and Tata Motors shareholders, constitutes the net issue.

Of the net offer size, 50% has been reserved for qualified institutional buyers (QIBs), while high net worth individuals (HNIs) can subscribe to 15%. The remaining 35% of the net offer is reserved for retail investors.

Also See: Upcoming IPO in India

Retail investors have the opportunity to bid for a minimum of 30 equity shares, with additional shares available in multiples of 30. The minimum investment for retail investors is set at Rs 15,000 for 30 shares, with a maximum investment limit of Rs 1.95 lakh (equivalent to 390 shares), as they are allowed to invest up to Rs 2 lakh in the IPO.

Notably, Tata Motors had recently sold 3.65 crore equity shares to TPG Rise Climate SF Pte Ltd at Rs 401.81 per share on October 25. The IPO’s upper price band of Rs 500 represents a 24.4% premium over the price at which TPG acquired Tata Technologies shares.

Also See: All IPO GMP Price Today

Tata Technologies, headquartered in Pune, is a global engineering services company that offers product development and digital solutions to global original equipment manufacturers and their tier-1 suppliers. The company has reported robust financial performance, with a 42.8% year-on-year growth in consolidated net profit at Rs 624 crore for the fiscal year ending in March 2023 and a 25% increase in revenue from operations at Rs 4,414.2 crore during the same period.

For the six-month period ending in September 2023, Tata Technologies saw a 36% surge in profit to Rs 351.9 crore and a 34% increase in revenue to Rs 2,526.7 crore compared to the same period the previous year.

JM Financial, Citigroup Global Markets India, and BofA Securities India are serving as the merchant bankers to the Tata Technologies IPO.

Investors and market participants are closely watching this historic IPO from the Tata Group, which is expected to generate significant interest in the coming weeks.

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