Tata Technologies IPO: Price, GMP, and Key Dates Explained

Summary: Tata Tech has set the price band for its maiden public issue at Rs 475-500 per share. Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter. Retail investors can make a minimum investment of Rs 15,000 for 30 shares. The company’s remarkable performance is highlighted by a substantial YoY growth of 42.8 percent in consolidated net profit, soaring to Rs 624 crore for the fiscal year concluding in March FY23. Simultaneously, there was a substantial 25 percent increase in revenue from operations, totaling Rs 4,414.2 crore during the corresponding period.

Tata Technologies, a part of the Tata Group, will be the first company to launch an IPO in nearly two decades, since the launch of TCS IPO in 2004.

Price Band:

Tata Tech has set the price band for its maiden public issue at Rs 475-500 per share.

Issue Open & Close Dates

The public issue will open on November 22 while the closing date will be November 24, 2023. The anchor book will open for a day on November 21.

Objective of IPO

The Tata Motors’ subsidiary is planning to raise Rs 3,042.51 crore via public issue at the upper price band. The issue comprises only an offer-for-sale (OFS) by the promoter and investors, and there is no fresh issue component.

Who Will Sell ?

Promoter Tata Motors will be offloading 4.62 crore equity shares worth Rs 2,313.75 crore in the OFS, while investors Alpha TC Holdings Pte Ltd will be selling 97.17 lakh shares worth Rs 485.84 crore, and Tata Capital Growth Fund I will be selling 48.58 shares worth Rs 242.92 crore.

Reserved Portion of Tata Tech IPO 

The global engineering services company has reserved 20.28 lakh shares for its employees and 60.85 lakh shares for the shareholders of Tata Motors.

Allocation:

• 50% for QIB
•  15 % for HNI
• 35% for Retail Investors

Bidding Details

Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter. Retail investors can make a minimum investment of Rs 15,000 for 30 shares, and their maximum investment would be Rs 1.95 lakh (390 shares) as they are allowed to invest up to Rs 2 lakh in the IPO.

Merchant Bankers to the Issue

JM Financial, Citigroup Global Markets India and BofA Securities India are the merchant bankers to the issue.

Company’s Financials

1. Financial Performance FY23:
   • Tata Technologies, a global product development and digital solutions provider, achieved a remarkable 42.8% YoY growth in net profit, reaching Rs 624 crore.
   • Concurrently, there was a substantial 25% increase in revenue, totaling Rs 4,414.2 crore for the fiscal year ended March FY23.
2. H1 FY24 Overview:
   • During the six months ending September FY24, Tata Technologies sustained its growth momentum.
   • The company experienced a significant 36% YoY rise in profit, reaching Rs 351.9 crore.
   • Additionally, revenue surged by 34% to Rs 2,526.7 crore compared to the same period in the previous year.

Tata Technologies IPO GMP

Tata Tech IPO GMP or grey market premium is +298 indicating that Tata Technologies share price today is trading at a premium of ₹298 in the grey market on November 16, 2023, according to investorgain.com. The estimated listing price of Tata Tech share price was indicated at Rs 798 apiece, which is 59.6 percent higher than the IPO price of Rs 500.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. You undertake any action based on the information in this blog post at your own risk. Please consult with a financial advisor before making any investment decisions.