Tata Technologies IPO open for subscription:

GMP, issue details, 10 key things to know before you invest

The subscription date for Tata Technologies’ IPO is set for Wednesday, November 22. The business provides services to customers in industries that are connected, such as heavy construction machinery, transportation, and aerospace.

The subscription date for Tata Technologies’ IPO is set for Wednesday, November 22. As stated in the Red Herring Prospectus (RHP), Tata Technologies is a leading worldwide engineering services provider that collaborates with original equipment manufacturers (OEMs) and their tier 1 suppliers to develop products and offer digital solutions, including turnkey solutions.

In an attempt to add value for its clients, the company collaborates with them to develop goods that improve end users’ quality of life and are safer and cleaner. The company leverages its extensive domain expertise in the automotive sector to service clients in related industries, such as aerospace, transportation, and heavy construction machinery.

According to RHP, the company’s listed industry rivals include Tata Elxsi Ltd (P/E of 61.55), L&T Technology Services Ltd (P/E of 37.47), and KPIT Technologies Ltd (P/E of 80.31). 

According to sources, Tata Technologies Limited’s revenue increased by 25.81% and its profit after tax (PAT) increased by 42.8% between the end of the fiscal year on March 31, 2023, and March 31, 2022.

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, Tata Tech continues to receive a significant portion of its revenue from its top five clients, which include Tata Motors Limited and some of its subsidiaries, as well as Jaguar Land Rover Limited.

According to RHP, one of the company’s largest risks is that if any or all of its Top 5 Clients experienced a decline in their business, chose to cease doing business, or drastically lowered their interactions with the company, their revenues could fall. Their business, operating results, cash flows, and financial condition could all be materially harmed by this.

Here are the 10 key things to know about Tata Tech IPO:

• Tata Technologies IPO date: Tata Technologies IPO date of subscription is scheduled on Wednesday, November 22, and closes on Friday, November 24.
• Tata Tech IPO price band: Tata Technologies IPO price band has been fixed in the range of ₹475 to ₹500 per equity share of face value of ₹2.
• Tata Technologies IPO lot size: Tata Technologies IPO lot size is 30 equity shares and in multiples of 30 equity shares thereafter.
• Tata Technologies IPO anchor investors: The allocation to anchor investors for Tata Technologies IPO is scheduled to take place on Tuesday, November 21.
• Details of Tata Tech’s IPO: It is anticipated that the Tata Tech IPO will raise ₹3,042.51 crore at the upper end of the price range. The company stated in an exchange filing on November 13 that this initial public offering (IPO) is an Offer For Sale (OFS) of up to 60,850,278 equity shares for cash. This includes an offer for up to 46,275,000 equity shares by the company; up to 9,716,853 equity shares by Alpha TC Holdings Pte. Ltd.; and up to 4,858,425 equity shares by Tata Capital Growth Fund I. These offers represent up to 11.41%, 2.40%, and 1.20%, respectively, of the paid-up equity share capital of Tata Technologies Limited.
• Tata Technologies IPO objectives: are to satisfy the selling shareholders’ request to sell up to 60,850,278 equity shares and to profit from the equity shares’ listing on stock exchanges. Furthermore, the company hopes that the proposed listing of its equity shares will increase the visibility and recognition of its brand and create a new market for the equity shares in India, according to RHP. 
• Lead Manager and Registrar of Tata Technologies IPO: JM Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited are the book running lead managers (BRLM) for the Tata Tech IPO. Link Intime India Private Ltd. is the registrar for this issue.
• Dates of Tata Technologies’ IPO allocation and listing: The Tata Technologies IPO basis for share allotment is expected to be finalized on Thursday, November 30. Refunds will be initiated by the company on Friday, December 1, and shares will be credited to allottees’ demat accounts on Monday, December 4. On Tuesday, December 5, shares from the Tata Technologies initial public offering (IPO) are probably going to be listed on the BSE and NSE. In the unlikely event that the business chooses to adopt the T+3 standard, the dates will be advanced.
• Reservations for the Tata Tech IPO: A minimum of 15% of the shares for Non Institutional Investors (NII), a minimum of 50% of the shares for Qualified Institutional Buyers (QIB), and a minimum of 35% of the offer are set aside for Retail Investors. Up to 2,028,342 equity shares have been reserved for the employee reservation portion, and up to 6,085,027 equity shares have been reserved for Tata Motors Ltd shareholders.
• Tata Technologies IPO GMP: The grey market premium, or IPO GMP, for Tata Tech is +347. According to investorgain.com, this showed that the price of Tata Technologies shares are currently trading at a premium of ₹347 in the grey market on Monday.

With the upper end of the IPO price range and the current premium in the grey market taken into account, the estimated listing price of Tata Tech shares was ₹847 each, 69.4% more than the ₹500 IPO price.