Tata Technologies IPO Anticipating Share Allotment and Listing Dates

Tata Technologies, an affiliate of Tata Motors, has been the talk of the market due to its robust response towards its Initial Public Offering (IPO), inviting attention from different categories of investors. The expectations are now leaning towards the share allotment, which the company plans to finalize by November 28.

The IPO was seen as a monumental move given it’s the first by the Tata Group in nearly two decades. Taking place between November 22-24, there was an astonishing subscription rate of 69.4 times. Market behaviour showed investors eagerly buying 312.65 crore equity shares, which overshadowed the original offer size of 4.5 crore shares. This unusual mass interest stretched over three days, with investors putting in bids worth Rs 1.56 lakh crore shares.

Breakdown by Investor Type
Broken down by investor types, qualified institutional buyers and high net-worth individuals had the most pronounced presence. The two categories bought shares at an impressive rate of 203.41 and 62.11 times their allotted quota. These numbers truly authenticate their aggressive investment behaviors in the market.

Retail investors also participated actively, subscribing to Tata Technologies shares 16.50 times, while Tata Technologies’ employees and Tata Motors’ shareholders reserved their interests 3.7 times and 29.2 times, respectively. Thus, interest was widespread and diverse, touching almost every investor category.

Financial Numbers Behind The IPO
Globally recognised for its engineering services, Tata Technologies successfully raised capital amounting to Rs 3,042.51 crore through this public issue. The shares were priced at Rs 500 each, which was the upper limit of the price band.

Worth clarifying is that the IPO of Tata Technologies consisted entirely of an offer-for-sale (OFS) by Tata Motors, a significant promoter of the company itself. Besides Tata Motors, other investors partaking in the OFS were Alpha TC Holdings and Tata Capital Growth Fund I.

The IPO was offered in the price band of Rs 475-500 per share, with the higher limit eventually being drawn for the share price.

Wrapping Up
With the allotment of shares expected to be finalized soon, the ardent participation of investors across all categories in Tata Technologies’ IPO is a highly positive indicator of its future potential. Given Tata’s reputation and the impressive numbers attained in this IPO, the markets are holding their breath for the share allotment and subsequent listing dates. This excitement and curiosity on the allotment and listing reflect the impact of this significant market event, the first by the Tata group in almost 20 years.