Tata Technologies IPO breaks records. Here's why

Dristi Sharma
Dristi SharmaNov 27, 2023 | 14:50

Tata Technologies IPO breaks records. Here's why

The Tata Technologies IPO hit Dalal Street for subscription on Wednesday, November 22. Photo: dailyO

After a record-breaking performance in last week's IPO (Initial Public Offering), the focus now shifts to the allocation of shares for the listing of Tata Technologies.

The Tata Technologies IPO has garnered 50.6 lakh applications on its public issue, marking a new record for the highest number of applications among private sector companies.

What happened

  • The Tata Technologies IPO commenced for subscription on Wednesday, November 22, and concluded on November 24.
  • The company offered its shares in a fixed price band of Rs 475-500 apiece with a lot size of 30 shares and its multiples, marking a historic moment as the first IPO by the Tata Group in over 19 years.
  • Tata Technologies is indeed a global engineering services company under the Tata Group umbrella. 
  • It provides engineering and technology services to auto, aero and heavy machinery makers, and will be valued at 202.83 billion rupees. 

Let's take a look at the numbers: 

From November 22 to November 24, Tata Technologies' initial public offering (IPO) witnessed tremendous demand, with investors seeking to buy 69.4 times more shares than the company initially offered.

  • Investors purchased 312.65 crore shares, although only 4.5 crore shares were available.
  • The total value of the shares bid for amounted to Rs 1.56 lakh crore within three days.
  • According to Business Today, prominent investors and affluent individuals showed substantial interest, acquiring shares at rates of 203.41 times and 62.11 times the allocated shares, respectively.
  • Conversely, smaller investors, Tata Technologies' employees, and Tata Motors' shareholders subscribed at rates of 16.50 times, 3.7 times, and 29.2 times their allocated shares, respectively.
  • Tata Tech set a new record in terms of the number of applications, surpassing LIC's previous record of 73.38 lakh applications in May 2022 (73.58 lakh applications for Tata Tech).

Why is Tata Technology becoming investors' choice?

  • Well, apart from the Trusted Tata Brand that comes with the IPO, Tata Technologies has also demonstrated robust financial growth over the past three years, showing increased revenue and margins.
  • Analysts expect this positive trend to continue, making it an attractive investment. The IPO is considered reasonably priced compared to industry peers, with a favourable market cap and price-to-earnings ratio predictions by experts that appeal to investors. 

What's next?

Following the total collection of 3,042.51 crore through the IPO, Tata Technologies aims to allocate shares to investors by November 28. The company's shares are scheduled to commence trading on stock exchanges - BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) - starting Thursday, November 30. If you have purchased shares successfully, they are expected to be reflected in your demat account by November 29.

To check the status of shares allotted, investors can refer to either the BSE website or the portal of the IPO registrar.

Last updated: November 27, 2023 | 14:50
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