Tata Technologies lists at a 140% premium; opens at Rs 1,200 per share on the NSE

Tata Technologies Limited, incorporated in 1994, stands as a prominent global engineering services firm specializing in product development and digital solutions and debuted on the Indian stock market today.

Upon its debut on the BSE, the Tata Technologies stock opened at Rs 1,199.95 per share, reflecting an impressive 139.99% premium compared to the issue price of Rs 500 per share from its initial public offering. Conversely, on the NSE, the stock debuted at Rs 1,200 per share, indicating a 140% premium. The market capitalisation of the company stands at Rs 48,678 crore.

The book-running lead managers for the IPO were JM Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited. Additionally, Link Intime India Private Limited is the issue’s registrar.

IPO Proceeds 

The company intends to allocate the net proceeds from the issue for the following purposes: Attain the advantages associated with listing the Equity Shares on the Stock Exchanges and conduct the Offer for Sale of up to 95,708,984 Equity Shares by the Selling Shareholders.

Company profile  

Tata Technologies Limited, incorporated in 1994, stands as a prominent global engineering services firm specializing in product development and digital solutions. Their comprehensive offerings, inclusive of turnkey solutions, cater to worldwide original equipment manufacturers (OEMs) and their tier-1 suppliers.

The primary goal of Tata Technologies is to enhance customer value by aiding in the creation of products that prioritize safety, cleanliness, and overall improvement in end-user quality of life.

Leveraging profound expertise in the automotive sector, Tata Technologies has garnered significant knowledge to serve clients in allied industries like aerospace, transportation, and heavy construction machinery.

Operating on a global scale, Tata Technologies brings together diverse teams from various regions, each equipped with distinct skill sets. These teams collaborate in real-time, leveraging their collective expertise to tackle intricate engineering challenges effectively.

Subscription details 

On November 24, 2023, the final day of the IPO window, the IPO witnessed an impressive response, especially when compared to other IPOs recently listed, with a subscription rate of 69.43 times. The public issue received mixed interest, with the retail category being subscribed 16.50 times, the QIB category achieving a subscription rate of 203.41 times, and the NII category reaching a subscription rate of 62.11 times.

The company attracted Rs 791.05 crore from various anchor investors by allocating 1.58 crore equity shares at Rs 500 per share. The complete lock-in period for these anchor investors ends on April 3, 2024.

The IPO price range was set between Rs 475 and Rs 500, with a face value of Rs 2 per share and a lot size of 30 shares. The total size of the company’s IPO was Rs 3,042.51 crore, and the final share issue price was fixed at Rs 500 each.

Financial Performance: 

Conclusion:

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely with the intention of capitalising on listing gains have already gained an impressive 140% return over its final issue price on the listing day itself. Investors who applied for the IPO for listing gains may consider closing their positions.

Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term as this company belongs to the renowned Tata Group, and this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.