Tata Technologies IPO Opens On Tuesday: Tata Technologies, the first initial public offering by the Tata Group in almost 20 years, attracted the highest grey market premium amongst the five mainboard IPOs to be launched this week. Tata Technologies IPO is going to hit Indian primary market on 22nd November 2023 i.e. tomorrow. Tata Technologies IPO date of subscription will remain open till 24th November 2023 i.e. till Friday this week.

Tata Technologies IPO: Price Band

The three-day issue, which runs till November 24, has a price band of ₹475-500 per share with a lot size of 30 equity shares and its multiples thereof. Analysts peg the post issue market cap between ₹19,269 crore and ₹20,283 crore.

Tata Technologies IPO: Important Dates

Tata Technologies IPO date of opening is 22nd November 2023 and it would remain available for bidding till 24th November 2023. Tata Technologies IPO allotment date is most likely on 27th November 2023 whereas most likely Tata Technologies IPO listing date is 29th November 2023.

Tata Technologies IPO: Lot Size

Tata Technologies IPO applicants will be to apply in lots and one lot of the public issue would comprise 30 company shares. So, a retail investor would require at least Rs 15,000 ( Rs 500 x 30) to apply for this much-awaited public issue.

Tata Technologies IPO: About the Company

Incorporated in 1994, Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEM) and their tier 1 suppliers. Backed by Tata Motors, the company boasts extensive knowledge in the automotive sector and has expanded its expertise into aerospace and heavy construction machinery, enhancing its commercial opportunities. As of September 2023, it had 12,451 employees.

Tata Technologies IPO: Financials

On the financial front, the company reported a turnover of ₹2,381 crore, ₹3,530 crore and ₹4,414 crore for FY21, FY22 and FY23, respectively, on a consolidated basis. It posted a net profit of ₹239 crore, ₹427 crore and ₹624 crore, respectively, for the aforementioned period.

Tata Tech’s growth trajectory over FY16-23 remains slower than peers’, but has seen improvement in the last three years because of traction in select accounts. Weakness in a large client in H1FY24 due to near completion of the large full-vehicle development projects may weigh on the company’s near-term performance which, is adequately captured in the IPO valuations, Emkay Global said in a note.

Tata Technologies IPO: Highest GMP Among Current IPOs

The global engineering services company’s shares were available at Rs 850 apiece in the grey market, which is 70 per cent premium over the upper price band of Rs 500 per share, analysts said on condition of anonymity to moneycontrol.com, adding Gandhar Oil Refinery, Flair Writing and IREDA shares quoted at a 21-30 percent premium, while Fedbank Financial Services was at around 8 percent premium over the upper price band.

The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.

Tata Technologies IPO: Should you Invest?

Giving ‘subscribe’ tag to Tata Technologies IPO Ventura said, “With the gradual recovery in the global economy, rising manufacturing capex and shift in manufacturing from US/Europe/China to India due to cost inflation and China+1 strategy, we are expecting strong in the TTECH’s financial performance in the coming years. At the IPO price of INR 500 (upper price band), TTECH is valued at a TTM P/E of 28.3X. Considering the growth opportunities and strong fundamentals of TTECH, we recommend a SUBSCRIBE rating for this IPO.”

JM Financial, Citigroup Global Markets India, and BofA Securities India are the book-running lead managers to the IPO, while Link Intime India Private Limited is the registrar

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