Global Engineering Firm Tata Technologies Raises Rs 791 Crore in Anchor Book for IPO

21 Nov 2023 , 08:41 PM

Global engineering services firm Tata Technologies has successfully garnered Rs 791 crore from 67 investors through its anchor book on November 21, a day before the highly anticipated IPO, marking the Tata Group’s first public offering in nearly two decades. The funds were raised at the upper end of the Rs 475-500 price band.

The initial public offering, following Tata Consultancy Services (TCS) in 2004, is set to open for subscription on November 22 and will close on November 24. Tata Technologies, in collaboration with book running lead managers, has allocated 1,58,21,071 equity shares to anchor investors at a price of Rs 500 per share.

The anchor book witnessed participation from esteemed global investors such as Goldman Sachs, BNP Paribas Funds, HSBC Global, and Oaktree Emerging Markets Equity Fund. Domestic contributors included SBI Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, HDFC Life Insurance Company, and others, showcasing a diverse and robust investor base.

IPO Structure and Utilization of Funds: The IPO, solely an offer-for-sale (OFS) by promoters Tata Motors, and investors Alpha TC Holdings & Tata Capital Growth Fund I, aims to mobilize Rs 3,042.51 crore through the offering of 6.08 crore equity shares at the upper price band. The entire issue proceeds, excluding IPO expenses, will go to the selling shareholders.

Investor Categories: In terms of allocation, half of the net offer size has been reserved for qualified institutional buyers, 15% for high net worth individuals, and the remaining 35% for retail investors.

Employee and Shareholder Reservations: Tata Technologies has reserved 20.28 lakh equity shares for its employees and an additional 60.85 lakh shares for Tata Motors shareholders. The IPO, excluding the employees’ and shareholders’ portion, constitutes the net issue.