In a historic move, Tata Technologies, a subsidiary of Tata Motors, recently concluded its Initial Public Offering (IPO), marking the Tata Group’s re-entry into the IPO market after more than 19 years. The Tata Technologies IPO, open for subscription from November 22 to November 24, witnessed an astounding response from investors, being oversubscribed by an impressive 69.4 times. As the IPO allotment date approaches, investors and market enthusiasts eagerly anticipate the verdict, with the allotment of shares expected to be finalized by November 28.
Key Highlights of Tata Technologies IPO
The Tata Technologies IPO, a significant event in the financial landscape, witnessed unprecedented subscription numbers, reflecting the robust demand for the company’s shares. Investors demonstrated a keen interest in the offering, with a total of 312.65 crore equity shares bid against the modest offer size of 4.5 crore shares. The cumulative bids during the three-day subscription period amounted to a staggering Rs 1.56 lakh crore.
Category-wise Subscription Breakdown of Tata Technologies IPO
Qualified institutional buyers (QIBs) and high net-worth individuals emerged as frontrunners in the subscription race, displaying exceptional enthusiasm by subscribing 203.41 times and 62.11 times their allotted quota, respectively. Even retail investors, Tata Technologies’ employees, and Tata Motors’ shareholders exhibited substantial interest, with subscription rates of 16.50 times, 3.7 times, and 29.2 times, respectively.
Offer Details and Financial Snapshot
The IPO, structured as an offer for sale (OFS), saw the offloading of 6.09 crore equity shares. The offering comprised the promoter Tata Motors selling 4.62 crore equity shares worth Rs 2,313.75 crore in the OFS, while investors Alpha TC Holdings Pte Ltd and Tata Capital Growth Fund I divested 97.17 lakh shares and 48.58 lakh shares, respectively. The IPO successfully raised Rs 3,042.51 crore at the upper price band of Rs 500 per share.
Tata Technologies, a global engineering services company and a pure-play manufacturing-focused Engineering Research & Development (ER&D) firm, is a subsidiary of Tata Motors. The company’s financial performance from March 31, 2022, to March 31, 2023, showcased remarkable growth, with revenue surging by 25.81 percent and profit after tax (PAT) witnessing an impressive uptick of 42.8 percent.
What’s Next? The Allotment Phase
As the subscription phase concludes, all eyes turn towards the crucial allotment phase, set to be finalized by November 28. Investors keenly await the outcome, anticipating the allotment status, which will determine the success of their applications. The equity shares are anticipated to be credited to successful applicants’ demat accounts by November 29.
How to Check Tata Technologies IPO Allotment Status?
Investors can easily check their Tata Technologies IPO allotment status on the BSE website or Link Intime India’s website. By entering their application number and PAN card number, investors can access the details of their allotment. It is imperative to ensure the accuracy of the entered details for the status to be displayed.
Anticipation Builds for a New Chapter
The Tata Technologies IPO has not only marked a significant return for the Tata Group to the IPO arena but has also garnered immense investor confidence. The impressive subscription numbers underscore the trust and enthusiasm investors have shown in the company’s growth prospects. As the IPO allotment date approaches, market enthusiasts eagerly await the outcome, heralding the beginning of a new chapter for Tata Technologies as a publicly listed entity. Stay tuned for the latest updates on this landmark event in the financial landscape.
