NEW DELHI: The much-awaited initial public offer (IPO) of Tata Technologies, specializing in engineering and product development digital services, was fully subscribed within minutes of its opening on Wednesday. This marks the first IPO from the Tata Group in almost two decades, with Tata Consultancy Services being the last group company to go public in 2004.
Investors oversubscribed the IPO by 2.89 times as they bid for more than 130.3 million shares compared with the 45 million shares on offer, data from the stock exchange showed.
This year, Indian IPOs have set new benchmarks both domestically and internationally, with 194 companies launching share offerings. This surge coincides with the Indian equity market reaching unprecedented highs, fueled by promising economic growth and a substantial consumer market. These factors have made India a highly appealing destination for both companies seeking to go public and investors.
The grey market indicates a potential listing gain of approximately 70%, leading many brokerages to advise investors to subscribe to the issue, anticipating benefits both from initial listing gains and long-term investment returns.
The non-institutional investor segment saw a subscription rate of 2.72 times, while the quota for Qualified Institutional Buyers (QIBs) was subscribed 1.98 times. Retail individual investors (RIIs) participated enthusiastically, with their portion being subscribed 1.63 times.
On Tuesday, Tata Technologies, a subsidiary of Tata Motors, announced it had raised Rs 791 crore from anchor investors. The IPO, priced between Rs 475-500 per share, is set to close on November 24.
This public offering is entirely an offer-for-sale (OFS) of 6.08 crore equity shares. As part of the OFS, Tata Motors will sell 4.63 crore shares, representing an 11.4% stake. Private equity firm Alpha TC Holdings is set to offload 97.17 lakh shares (2.4% stake), and Tata Capital Growth Fund I will sell 48.58 lakh shares, accounting for 1.2% of the shareholding.
JM Financial, Citigroup Global Markets, and BofA Securities are serving as the book-running lead managers for the IPO.
The equity shares of Tata Technologies are expected to be listed on both the BSE and NSE.
(With inputs from agencies)
