Tata Technologies IPO: Bidding Opens on November 22, Sets IPO Price at Rs 475-500 Per Share

16 Nov 2023 , 09:19 AM

Tata Technologies Limited stands as a prominent global engineering services firm, specializing in the provision of product development and digital solutions. Their comprehensive offerings encompass turnkey solutions and are extended to both worldwide original equipment manufacturers (OEMs) and their tier-1 suppliers. The company is coming up with its initial public offering (IPO). Here’s a summary of the key details:

1. IPO Timeline:
   • IPO Opening Date: November 22, 2023
   • IPO Closing Date: November 24, 2023
   • Anchor Book Opening: November 21, 2023
   • Basis of Allotment: November 30, 2023
   • Initiation of Refunds: December 1, 2023
   • Credit of Shares to Demat: December 4, 2023
   • Listing Date: December 5, 2023
2. Price Band:
   • The price band for Tata Technologies’ IPO is set at Rs 475-500 per share.
3. Offer Details:
   • The IPO is entirely an Offer for Sale (OFS) of 6.08 crore shares, representing 15 percent of the paid-up capital.
   • The OFS includes shares from Tata Motors, Alpha TC Holdings Pte Ltd, and Tata Capital Growth Fund I.
4. Reservation for Investors:
   • Half of the net offer size is reserved for Qualified Institutional Buyers (QIBs).
   • 15 percent is reserved for High Net Worth Individuals (HNIs).
   • The remaining 35 percent is reserved for retail investors.
5. Bid Details:
   • Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter.
   • Retail investors can invest a minimum of Rs 15,000 for 30 shares, up to a maximum of Rs 1.95 lakh (390 shares).
6. Use of Proceeds:
   • Since the IPO is entirely an OFS, Tata Technologies will not receive any money. The proceeds will go to the selling shareholders.
7. Previous Share Offering:
   • The initial plan was to sell 9.57 crore shares (23.6 percent of the paid-up capital).
   • The offer size was reduced after Tata Motors sold a 9.9 percent stake in Tata Tech to investors led by TPG in October.
8. Financial Performance:
   • Tata Technologies’ revenue and profit growth slowed in FY23 compared to FY22.
   • Revenue for FY23 grew 25 percent to Rs 4,418 crore, and profit after tax was up 63 percent at Rs 708 crore.
9. Merchant Bankers:
   • JM Financial, Citigroup Global Markets India, and BofA Securities India are the merchant bankers to the issue.