Tata Technologies IPO: There is a lot of buzz among investors regarding the IPO of Tata Technologies, which is expected to hit the market soon. After 19 years, a company of Tata Group is preparing to be listed in the stock market. The launch date of the IPO has not been announced yet. However, since the filing of the draft paper with SEBI in March, there have been various speculations regarding valuation and possible IPO price.
According to the draft papers, Tata Technologies, a subsidiary of Tata Motors, will sell 9.571 crore shares under the IPO, which is equivalent to 23.60 per cent shareholding of the company. This IPO will be completely Offer for Sale (OFS).
Condition of Gray Market
Tata Technologies’ latest IPO GMP is priced at Rs 84 per share, down from Rs 100 earlier this week, according to several websites that track gray market premiums. However, according to market experts, investment decisions should be taken based on the financials and fundamentals of the company rather than signals from the gray market.
Tata Tech IPO details
Tata Tech’s IPO will be completely Offer for Sale (OFS) ie the company has no plans to issue new shares under it. Under this IPO, 9,57,08,984 equity shares of face value of Rs 2 each, which is equivalent to 23.60 per cent shareholding of the company, will be sold under OFS window. Through the IPO, Tata Motors plans to sell 8,13,33,706 shares, Alpha TC Holdings 97.16 lakh and Tata Capital Growth Fund 1 48.58 lakh shares.
The subscription period, price band and lot size for this IPO is yet to be fixed. 50 per cent of the issue will be reserved for Qualified Institutional Investors (QIB), 15 per cent for Non-Institutional Investors (NII) and 35 per cent for retail investors. After the success of the IPO, its shares will be listed on BSE and NSE.
Company details
Tata Tech is a global engineering services company. It provides end-to-end end-to-end solutions including product development and digital solutions to Original Equipment Manufacturers (OEMs) around the world. The company services industries such as aerospace, transportation and construction heavy machinery, among others. It was setup in 1994. Tata Motors has the majority stake in it and it has 74.69 per cent shareholding of Tata Tech.
