Tata Technologies IPO: GMP, price, other details as issue opens tomorrow. Should you apply?

Tata Technologies IPO: The initial public offering (IPO) of the Tata Technologies Ltd is going to hit Indian primary market on 22nd November 2023 i.e. on tomorrow. Tata Technologies IPO date of subscription will remain open till 24th November 2023 i.e. till Friday this week. The Tata grop company has fixed Tata Technologies IPO price band at ₹475 to ₹500 per share levels. Tata Technologies Ltd aims to raise ₹3,042.51 crore from this initial offer, which is completely offer for sale (OFS) in nature.

Tata Technologies IPO GMP today

According to market observers, Tata Technologies IPO grey market premium (GMP) today is ₹351, which is unchanged from yesterday's GMP of ₹351. This means, Tata Technologies IPO GMP has remained steady despite choppy trends on Dalal Street. They went on to add that Tata Technologies IPO GMP has more or less remained steady in last three days despite not so exciting trend on Dalal Street, which is praiseworthy as shares of Tata Technologies Ltd are still available at a premium of 70 per cent against Tata Technologies IPO price band of ₹475 to ₹500 per equity share. They said that strong sentiments in grey market signals strong response to the public issue once it opens on tomorrow.

Also Read: IREDA IPO opens today. GMP, subscription status, price, review, other details. Apply or not?

However, stock market experts maintained that one should not decide investment decision on the basis of grey market sentiments. They said that GMP is non regulated and completely speculative. They went on to add that sometimes GMP can be artificial as well because it involves even those who have high stake involved with the public offer. They advised investors to scan balance sheet of the company as it would give concrete fundamental picture of the company for long term.

Tata Technologies IPO details

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 ₹15,000 ( ₹500 x 30) to apply for this much awaited public issue. 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.

Also Read: Tata Technologies IPO vs IREDA IPO vs Gandhar Oil Refinery IPO: Which upcoming IPO is better?

Tata Technologies IPO review

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."

Arihant Capital has also recommended 'apply' tag to the public offer citing, "Tata Technologies Limited provides a diverse range of services encompassing IT consultancy, SAP implementation, and CAD/CAM engineering and design consultancy. The revenue breakdown as of FY23 indicates approximately 80% from services, 11% from products, and 9% from education. Strong partnerships, including with Dassault and Siemens, and utilization of Microsoft AZURE products enable global expansion. Recent empanelment by Airbus signals significant growth potential.The company's revenue and PAT demonstrated a CAGR of 36% and 62%, respectively, from FY21 to FY23. In H1FY24, there was a 34% and 36% YoY growth in revenue and PAT. Robust earnings growth is anticipated moving forward. Tata Technologies has outpaced Tata Elxsi, L&T Technologies, and KPIT Technologies in revenue CAGR over the last three years. At an upper band valuation of INR 500, the issue's valued at a PE ratio is 32.5x based on FY23 EPS. We recommend subscribing to the issue for both short-term listing gains as well as long-term investment prospects."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.ad