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

Tata Tech IPO news: 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 date of subscription is scheduled on Wednesday, November 22, and closes on Friday, November 24. The allocation to anchor investors for Tata Technologies IPO is scheduled to take place on Tuesday, November 21.

The floor price is 237.50 times the face value of the equity shares and the cap price is 250 times. The price to earnings ratio based on diluted EPS for financial year 2023 at the cap price is as high as 32.53 times and at the floor price 30.90 times. Tata Technologies IPO lot size is 30 equity shares and in multiples of 30 equity shares thereafter.

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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 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. 

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Tata Technologies 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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The 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.

The company's listed industry peers are KPIT Technologies Ltd (with P/E of 83.10), L&T Technology Services Ltd (with P/E of 40.92), and L&T Technology Services Ltd (with P/E of 70.67).

Also Read: Tata Technologies IPO to open for subscription on November 22. Details here

Tata Technologies IPO GMP today 

Tata Tech IPO GMP or grey market premium is +298. This indicated Tata Technologies share price today are trading at a premium of ₹298 in the grey market on Thursday, 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 ₹798 apiece, which is 59.6% higher than the IPO price of ₹500.

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

Also Read: Tata Tech IPO: Morgan Stanley, Blackrock, US funds likely to invest in the public issue, says report

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