23-Nov-2023
2 mins read
The IPO (Initial Public Offering) of Tata Technologies Limited, a subsidiary of Tata Motors, has achieved rapid and full subscription within minutes of opening for subscription. This success marks a historic moment as it is the first IPO from the Tata Group in almost two decades since Tata Consultancy Services (TCS) in 2004.
Subscription Details
The IPO, valued at Rs 3,042.5 crore, has garnered significant investor interest, with bids for 8,73,22,890 shares received against the 4,50,29,207 shares on offer. This interest translates to a robust 1.94 times subscription, according to data from the National Stock Exchange (NSE).
Subscription Breakdown
The non-institutional investors’ category witnessed robust demand, subscribing 2.72 times, while Qualified Institutional Buyers (QIBs) showed strong interest with a subscription rate of 1.98 times. Retail Individual Investors (RIIs) participated actively, achieving a subscription rate of 1.63 times.
IPO Details and Pricing
Tata Technologies’ IPO, open for subscription from November 22 to November 24, offers shares in the price band of Rs 475 to Rs 500 per equity share, having a face value of Rs 2. The lot size is set at 30 equity shares, with multiples available after that.
Anchor Investor Participation and Offer-for-Sale Structure
Tata Technologies, specialising in engineering and product development digital services, reported raising Rs 791 crore from anchor investors. The company’s public issue consists entirely of an Offer-for-Sale (OFS) of 6.08 crore equity shares. Tata Motors, the majority stakeholder, will offload 4.63 crore shares, equivalent to an 11.4% stake. Private equity firm Alpha TC Holdings plans to sell 97.17 lakh shares (2.4% stake), while Tata Capital Growth Fund I will divest 48.58 lakh shares (1.2% stake).
Strategic Stake Sale and IPO Advisors
In a strategic move, Tata Motors recently finalised a deal to sell the stake of 9.9% in Tata Technologies to TPG Rise Climate for Rs 1,613.7 crore. JM Financial, Citigroup Global Markets, and BofA Securities are the appointed book-running lead managers overseeing the IPO process. Following the listing, equity shares of Tata Technologies will be traded on both the BSE and NSE.