NE BUSINESS BUREAU
AHMEDABAD, NOV 17
Tata Technologies has fixed the price band for its upcoming initial public offer (IPO) at ₹475-500 per equity share of face value of ₹2. with a lot size of 30 equity shares and its multiples thereof. At the upper end of the price band, the size of the Tata Motors’ arm’s IPO will stand at Rs 3,042.5 crore, while the company will be valued at Rs 20,283 crore.
Tata Technologies IPO date of subscription is scheduled on Wednesday, November 22, and closes on Friday, November 24. The allocation to anchor investors for Tata Technologies IPO is scheduled to take place on Tuesday, November 21.
- The public offer will run for subscription is scheduled on Wednesday, November 22, and closes on Friday, November 24
- The allocation to anchor investors is scheduled to take place on Tuesday, November 21
- Bids can be made for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter
- It will consist of an offer for sale of 60.85 million shares
This will be the first maiden share sale by a Tata group firm in nearly two decades. The last IPO from India’s most valuable conglomerate was that of Tata Consultancy Services in 2004.
The floor price is 237.50 times the face value of the equity shares and the cap price is 250 times. The price to earnings ratio based on diluted EPS for financial year 2023 at the cap price is as high as 32.53 times and at the floor price 30.90 times.
Tentatively, Tata Technologies IPO basis of allotment of shares will be finalised on Thursday, November 30 and the company will initiate refunds on Friday, December 1, while the shares will be credited to the demat account of allottees on Monday, December 4. Tata Technologies IPO shares are likely to be listed on BSE and NSE on Tuesday, December 5. If in case, the company decides to switch to T+3 norm, the dates will get preponed.
This IPO is an Offer For Sale (OFS) of up to 60,850,278 equity shares for cash, comprising 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, each representing up to 11.41%, 2.40%, and 1.20%, respectively of the paid-up equity share capital of Tata Technologies Limite
Tata Tech IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors. The employee reservation portion has been allocated upto 2,028,342 equity shares, and Tata Motors Ltd shareholders has been reserved up to 6,085,027 equity shares.
Financially, Tata Technologies’ net worth has grown from ₹ 2,142.5 crore at the end of March, 2021, to ₹ 2,853.13 crore at the end of September 2023. Its profit after tax climbed to ₹ 624 crore at the of the March 2023 from ₹ 239 crore at the end of March 2021. However, the profit fell to ₹ 352 crore at the end of September 2023.
The shares likely to be listed on BSE and NSE on December 5.
The Tata Tech IPO’s book running lead managers (BRLM) are JM Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited. The issue’s registrar is Link Intime India Private Ltd.
