Tata Technologies IPO Sees Stellar Demand, Oversubscribed 12.14x on Day 2

23 Nov 2023 , 02:40 PM

Investor enthusiasm for the Tata Technologies IPO remains strong, as evidenced by the acquisition of 54.67 crore equity shares by the end of the second day of bidding. This impressive demand, against an initial offer size of 4.5 crore shares, has led to a substantial 12.14 times subscription as of November 23. Click here to subscribe the IPO.

Marking a significant milestone, this IPO represents the first foray into the public market by the Tata Group in over 19 years. The conglomerate’s last public issue was through Tata Consultancy Services in 2004, underlining the anticipation surrounding this latest offering.

The robust response extends across all investor categories, with high net-worth individuals showcasing a remarkable 24.14 times subscription to their allotted quota. Retail investors also displayed keen interest, subscribing 9.61 times. Qualified institutional buyers, in their reserved portion, demonstrated a solid 6.87 times subscription.

Engaging actively from the onset, employees of Tata Technologies and shareholders of Tata Motors have made substantial contributions, subscribing 2.04 times and 16.73 times the portions designated for them, respectively. Out of the total issue, 20.28 lakh shares are reserved for employees, and 60.85 lakh shares are allocated for shareholders. Excluding these reserved portions, the net issue is determined.

The IPO, scheduled to conclude on November 24, exhibited early momentum by achieving a subscription rate of 6.54 times on the first day of bidding, which commenced on November 22.

Pune-based Tata Technologies has set the price band for the maiden public issue at Rs 475-500 per share. This IPO, valued at Rs 3,042.51 crore, is entirely an offer-for-sale by the promoter, Tata Motors, along with contributions from investors Alpha TC Holdings and Tata Capital Growth Fund 1.