Tata Technologies IPO open for subscription: GMP, issue details, 10 key things to know before you invest

Tata Technologies IPO date of subscription is scheduled on Wednesday, November 22. Tata Technologies is a top global engineering services provider that works with original equipment manufacturers (OEMs) and their tier 1 suppliers to develop products and provide digital solutions, including turnkey solutions, according to Zinnov Report, as stated in the Red Herring Prospectus (RHP).

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The company works with its clients to develop products that enhance the quality of life for their end users and are safer and cleaner, all in an effort to create value for them. The company serves clients in related industries, including aerospace, transportation, and heavy construction machinery, by leveraging its deep domain expertise in the automotive sector.

The company's listed industry peers are KPIT Technologies Ltd (with P/E of 80.31), L&T Technology Services Ltd (with P/E of 37.47), and Tata Elxsi Ltd (with P/E of 61.55), as per RHP. 

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From the end of the fiscal year on March 31, 2023, to March 31, 2022, Tata Technologies Limited's revenue climbed by 25.81%, while its profit after tax (PAT) increased by 42.8%, as per reports.

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Tata Tech continues to receive a significant portion of its revenue from its top five clients, which include Tata Motors Limited and some of its subsidiaries, as well as Jaguar Land Rover Limited, based on revenue generated in each of the six-month periods ended September 30, 2023, and September 30, 2022, as well as for Fiscals 2023, 2022, and 2021.

One of the company's biggest risks, according to RHP, is that its revenues could decline if any or all of its Top 5 Clients saw a decline in their business, decided to stop doing business, or significantly reduced their dealings with the company. This could have a materially negative impact on their business, operating results, cash flows, and financial condition.

Also Read: Tata Technologies IPO opens on November 22, price band set at ₹475-500 per share

Here are the 10 key things to know about Tata Tech IPO;

Tata Technologies IPO date: Tata Technologies IPO date of subscription is scheduled on Wednesday, November 22, and closes on Friday, November 24.

Tata Tech IPO price band: Tata Technologies IPO price band has been fixed in the range of ₹475 to ₹500 per equity share of face value of ₹2.

Tata Technologies IPO lot size: Tata Technologies IPO lot size is 30 equity shares and in multiples of 30 equity shares thereafter.

Tata Technologies IPO anchor investors: The allocation to anchor investors for Tata Technologies IPO is scheduled to take place on Tuesday, November 21.

Tata Tech IPO details: At the upper end of the price band, Tata Tech IPO is expected to raise ₹3,042.51 crore. This IPO is an Offer For Sale (OFS) of up to 60,850,278 equity shares for cash, comprising of an offer for up to 46,275,000 equity shares by the company; up to 9,716,853 equity shares by Alpha TC Holdings Pte. Ltd.; and up to 4,858,425 equity shares by Tata Capital Growth Fund I, each representing up to 11.41%, 2.40%, and 1.20%, respectively of the paid-up equity share capital of Tata Technologies Limited, said the company in an exchange filing on November 13.

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Tata Technologies IPO objectives: The objective of the offer is to fulfil the selling shareholders' offer to sell up to 60,850,278 equity shares and to reap the benefits of listing the equity shares on stock exchanges. In addition, the company anticipates that the proposed listing of its equity shares will improve its brand recognition and visibility and open up an Indian public market for the equity shares, as per RHP. 

Lead Manager and Registrar of Tata Technologies IPO: Tata Tech IPO's book running lead managers (BRLM) are JM Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited. The issue's registrar is Link Intime India Private Ltd.

Also Read: Tata Technologies IPO: GMP remains steady. Price, lot size, other details of upcoming IPO

Tata Technologies IPO listing date and allotment date: Tentatively, Tata Technologies IPO basis of allotment of shares will be finalised on Thursday, November 30 and the company will initiate refunds on Friday, December 1, while the shares will be credited to the demat account of allottees on Monday, December 4. Tata Technologies IPO shares are likely to be listed on BSE and NSE on Tuesday, December 5. If in case, the company decides to switch to T+3 norm, the dates will get preponed.

Tata Technologies IPO reservation: Tata Tech IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors. The employee reservation portion has been allocated upto 2,028,342 equity shares, and Tata Motors Ltd shareholders has been reserved upto 6,085,027 equity shares.

Tata Technologies IPO GMP: Tata Tech IPO GMP or grey market premium is +347. This indicated Tata Technologies share price today are trading at a premium of ₹347 in the grey market on Monday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Tata Tech share price was indicated at ₹847 apiece, which is 69.4% higher than the IPO price of ₹500.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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