Tata Technologies IPO: A Landmark Offering at ₹500 per Share Marks Tata Group's Return to Public Markets

Tata Motors' subsidiary, Tata Technologies, has made waves in the financial sphere by finalizing the offer price for its Initial Public Offering (IPO) at ₹500 per equity share. The IPO, valued at ₹3,042.5 crore, witnessed an astounding subscription of 69.43 times on the last day of subscription, indicating significant interest from institutional buyers.

The Offer Price Revelation

In a regulatory filing on Saturday evening, Tata Motors disclosed that Tata Technologies, in collaboration with book running lead managers, has settled on the offer price at ₹500 per equity share with a face value of ₹2 each. This development follows the IPO's closure on Friday, where it garnered attention with a subscription rate far exceeding expectations.

Subscription Surge and Institutional Interest

The Tata Technologies IPO, specializing in engineering and product development digital services, had a price band of ₹475-500 per share. The remarkable subscription rate of 69.43 times indicates robust investor confidence, primarily fueled by substantial participation from institutional buyers. The surge in subscriptions positions Tata Technologies as a noteworthy player in the realm of engineering and digital services.

IPO Details and Allotment Expectations

The IPO's total worth amounts to ₹3,042.51 crore, encompassing the sale of 4.63 crore equity shares by Tata Motors, valued at ₹2,313.75 crore. Additionally, Alpha TC Holdings Pte Ltd is set to sell 97.17 lakh equity shares, totaling ₹485.84 crore, and Tata Capital Growth Fund I will part with 48.58 lakh equity shares, amounting to ₹242.92 crore. These figures are contingent upon the finalization of the basis of allotment, as indicated in the regulatory filing.

The anticipated allotment of shares is scheduled for Tuesday, November 28, 2023, with the listing date expected on Thursday, November 30, 2023. These dates align with the stock market's operational schedule.

Tata Group's Return to IPOs After Two Decades

Notably, this IPO marks a significant moment in the financial history of the Tata Group, as it is the conglomerate's first initial public offering in almost two decades. The last instance was in 2004 when Tata Consultancy Services went public. The return to the public markets underlines Tata Technologies' strategic move to leverage investor interest and capitalize on the booming digital services and engineering sectors.

In conclusion, the Tata Technologies IPO at ₹500 per share signifies a milestone in the financial landscape, showcasing the resurgence of the Tata Group in the IPO arena after a prolonged hiatus. The overwhelming subscription rate underscores the market's optimism, positioning Tata Technologies as a key player in the evolving landscape of digital services and engineering.