Anticipation Builds As Tata Technologies, IREDA IPOs Prepare For Indian Market Debut
Two mainboard IPOs, Tata Technologies and IREDA, are scheduled to debut on Indian bourses on the specified dates. The allotment date for the IREDA IPO has been finalised, while Tata Technologies IPO allotment will be finalised on 28 November. Cumulatively, both IPOs aimed to raise Rs 5,192 and were oversubscribed before the closing date.
Tata Technologies garnered significant interest from investors, with the Rs 3,042 crore offer being subscribed 69.4 times. Bids were received for 312.42 crore equity shares, totaling Rs 1,56,211.7 crore, at the upper price band against an issue size of 4.5 crore equity shares.
Experts anticipate a substantial premium listing due to attractive valuations, the firm's strong fundamentals, and the overwhelming response to the IPO. The price band for the offer, which commenced on 22 November, was fixed at Rs 475 to Rs 500 per share.
The issue consisted exclusively of an offer-for-sale (OFS) of 6.08 crore shares by the promoter Tata Motors and investors Alpha TC Holdings and Tata Capital Growth Fund 1.
“Tata Technologies, an engineering services provider, is set to make its much-awaited stock market debut soon. The grey market premium (GMP) for Tata Technologies shares is currently Rs 320 (82.80 per cent), indicating that the shares could list at around Rs 914 per share. Tata Technologies has a strong track record of growth and profitability, and its global presence and expertise in engineering solutions have positioned it as a preferred partner for multinational corporations across diverse industries. Tata Technologies' diversified customer portfolio, robust delivery network, and emphasis on innovation further solidify its competitive advantage,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
With a price-to-earnings (PE) ratio of 18.2 times, the Tata Technologies IPO is priced fairly, reflecting the company's strong fundamentals and promising growth prospects. Given the immense investor interest and the company's robust capabilities, Tata Technologies is poised for a successful listing on the Indian stock exchanges, and it will be interesting to witness this listing, added Nyati.
Retail investors, Tata Technologies employees, and Tata Motors shareholders all responded aggressively to the offer, subscribing 16.42 times, 3.67 times, and 29.12 times to the portion set aside for them, which was 35 per cent of the net issue, 20.28 lakh shares, and 60.85 lakh shares reserved in the issue, respectively.
Qualified institutional investors (QII) purchased 203.41 times, while high net worth individuals (HNI) bought 62.10 per cent. Both QII and HNI had 50 per cent and 15 per cent reservations, respectively, in the issue.
The other primary market IPO, set to debut on the Indian bourses, has garnered interest and optimism for its premium listing. Indian Renewable Energy Development (IREDA), a government of India (GoI) enterprise IPO, is set to list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 29 November. Notably, the allotment was finalised on 25 November.
The total issue size of the IPO was Rs 2,150 crore, consisting of Rs 1,290 crore of fresh equity shares combined with Rs 860 crore of the offer-for-sale (OFS) component, with the price band of Rs 30 to 32 per equity share.
“IREDA, a state-run Mini Ratna non-banking financial corporation (NBFC), is poised to make history with its upcoming mainboard IPO, drawing significant attention despite being fully priced. The QIB segment's oversubscription by 104 times indicates strong market anticipation for its debut on 29 November. Mehta Equities predicts a promising 25 per cent or more listing gain against the Rs 32 issue price, citing IREDA's leading role in renewable energy financing and the potential Navratna company upgrade,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
The NBFC's financial autonomy is expected to boost its competitive edge. Positioned as India's largest green financing NBFC, IREDA aligns with the nation's ambitious renewable energy goals. Short-term investors are advised to consider booking profits above the expected gain, while long-term investors are encouraged to hold for future potential. Mehta Equities suggests accumulating IREDA post-listing dips for promising long-term returns, extending an opportunity for those who missed the public offer, added Tapse.
