Tata Technologies Sets IPO Offer Price At Rs 500 Per Share
Tata Motors announced on Saturday that its subsidiary, Tata Technologies, has finalised the offer price, including the anchor investor offer price, at Rs 500 per equity share for its initial public offering (IPO).
The IPO of Tata Technologies, valued at Rs 3,042.5 crore, witnessed robust demand, with a subscription of 69.43 times on the final day, driven by significant participation from institutional buyers. The public issue had a price band of Rs 475-500 per share.
The IPO size amounts to Rs 3,042.51 crore, comprising an offer for sale of 4.63 crore equity shares by Tata Motors (Rs 2,313.75 crore), 97.17 lakh equity shares by Alpha TC Holdings Pte (Rs 485.84 crore) and 48.58 lakh equity shares by Tata Capital Growth Fund I (Rs 242.92 crore), subject to finalisation of the basis of allotment.
Tata Technologies' initial share sale garnered bids for 3,12,64,91,040 shares against 4,50,29,207 shares on offer, as per NSE data. Notably, this IPO marks the first from the Tata Group in nearly two decades, with Tata Consultancy Services being the last from the group in 2004.
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, highlighted the positive factor of oversubscription, stating that well-priced issues with investor appeal tend to attract substantial interest. Other listings this week, including Fedbank Financial Services, Flair Writing Industries, Indian Renewable Energy Development Agency and Gandhar Oil Refinery, were oversubscribed between 2.20 and 64.07 times.
India has witnessed a record 196 IPOs in 2023, setting a new benchmark domestically and internationally. The buoyant domestic equity market, driven by India's economic growth prospects and a vast consumer base, continues to attract companies and investors. Kejriwal anticipates this momentum to persist in the coming months, provided IPO pricing remains favourable.
