Tata Technologies Ltd's IPO to Open for Subscription from November 22

The wait is over. A Tata group company is going to hit the primary market after a gap 19-years. Tata Technologies Ltd”s initial public offering (IPO) will open for subscription on November 22, 2023. The issue price will be between Rs. 475 and Rs. 500 per equity share.

Tata Consultancy Services (TCS) was the last Tata group company to list on the stock exchanges. TCS shares listed at a premium of 26.6%.

Tata Technologies” IPO will remain open for subscription until November 24, 2023. Investors can apply for a lot comprising 30 Tata Technologies shares and multiples thereof. Tata Technologies aims to raise Rs. 7,300 crores from the primary market.

The IPO is proposed to offer up to 60,850,278 shares, representing 15 percent of Tata Technologies” paid-up equity share capital.

“This IPO provides, inter alia, a reservation of up to 6,085,027 equity shares, i.e., 10 per cent of the offer, for subscription by eligible shareholders of TML, i.e., Individuals and HUFs who are the public equity shareholders (including shareholders holding ordinary shares and “A” ordinary shares in TML and excluding such persons who are not eligible to invest in the offer under applicable laws, rules, regulations and guidelines) as on the date of the filing of the RHP, i.e., Monday, November 13, 2023,” read a regulatory filing.

Tata Motors will offload 11.4 percent of its stake in the IPO, while private equity firm Alpha TC Holdings and Tata Capital Growth Fund I will sell 2.4 percent and 1.2 percent stakes respectively.

With a Tata group company opening its subscription in the primary market after nearly two decades, analysts are bullish on the shares. Rajesh Sinha, Sr. Research Analyst at Bonanza Portfolio, provided a “subscribe” tag for the medium to long term, according to Livemint.

Commenting on the Tata Technologies IPO, Atul Parakh, CEO at Bigul, said, “TATA Technologies will be the IPO to look upon in the next week, which everyone has been waiting for. The IPO is coming with a face value of ?2 with good valuation comfort concerning its peers in the names of KPITTECH and TATAELXI. The company is also backed by TATA, with solid financials and prospects. The investors” interest also exhibits probable heavy listing gains, which is also a major factor of the retail interest in the stock.”