Tata Technologies Limited, a subsidiary of the renowned Tata Group, is a global leader in engineering and digital services. The company has announced an Initial Public Offering (IPO) to expand its market presence and provide an exit route for existing shareholders. This move is significant in the context of the company’s growth trajectory and the broader engineering sector.
IPO Snapshot
The IPO is scheduled to open on November 22, 2023, and close on November 24, 2023. It comprises a book-built issue worth ₹3,042.51 crores, entirely an offer for sale of 6.09 crore shares. The IPO is set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with an expected listing date of December 5, 2023.
Company Profile
History and Evolution: Established in 1994, Tata Technologies has grown into a global player in the engineering and digital solutions space. The company specializes in providing comprehensive services to automotive, aerospace, and heavy machinery industries, among others.
Core Business Operations: The company’s operations span product development, IT services, and digital enterprise solutions, making it a key player in its domain. Its expertise lies in bridging the gap between engineering and IT, offering integrated services to leading original equipment manufacturers (OEMs) and their suppliers.
Global Footprint: With operations spread across North America, Europe, and Asia, Tata Technologies boasts a diverse and international client base. This global presence not only diversifies its revenue streams but also enhances its ability to serve clients with varied and complex needs.
Detailed Tata Technologies IPO Information
Issue Size and Offer Details: The IPO is entirely an offer for sale, meaning no new shares are being issued, and the proceeds will go to the selling shareholders. The total issue size amounts to 60,850,278 shares, translating to a value of ₹3,042.51 crores.
Price Band and Investment Options: The price band is set between ₹475 and ₹500 per share. Retail investors can bid in a minimum lot size of 30 shares, equating to an investment of ₹15,000. The offer includes specific lot sizes and investment amounts for different categories of investors, including small and big non-institutional investors.
Listing Details: The IPO’s listing on prominent exchanges like the BSE and NSE is expected to enhance its visibility and trading liquidity.
Financial Performance Analysis
Revenue and Profit Trends: In recent years, Tata Technologies has shown an impressive growth trajectory. The company’s revenue and profit after tax (PAT) have witnessed significant growth, indicating strong business fundamentals and efficient operations.
Assets and Net Worth: The company’s assets and net worth have shown a steady increase, highlighting its financial stability and growth potential.
Purpose and Use of IPO Funds
IPO Objectives: The primary objective of the IPO is to provide liquidity to its existing shareholders and enhance the company’s brand recognition and credibility in the market.
Fund Allocation: Since the IPO is an offer for sale, the company itself will not receive any proceeds from the issue. The funds raised will be distributed to the selling shareholders.
Investment Analysis
Company Strengths: Tata Technologies’ strengths lie in its robust client base, diverse service offerings, and the backing of the Tata brand. The company’s focus on emerging technologies and digital solutions positions it well for future growth.
Market Risks and Challenges: Potential risks include market competition, technology disruptions, and economic fluctuations that could impact its business sectors.
Valuation Perspective: The valuation of the IPO, compared to industry peers and market conditions, suggests a reasonable investment opportunity, considering the company’s growth prospects and financial health.
Participation in the Tata Technologies IPO
Application Process: Investors can apply for the IPO through various channels, including online trading platforms and offline brokerage services.
Brokerage Views: The IPO has garnered positive attention from several brokerage houses and financial analysts, citing the company’s strong market position and growth potential.
Key Dates and Allotment Process
IPO Timeline: The IPO opens on November 22, 2023, and closes on November 24, 2023. The allotment date is set for November 30, 2023, with refunds initiation on December 1, 2023, and share credit to demat accounts by December 4, 2023.
Share Allotment: The allotment process will be transparent and based on the demand received in various investor categories. The company has made provisions for equitable distribution among retail and institutional investors.
Conclusion
Final Assessment: The Tata Technologies IPO presents an interesting opportunity for investors looking to be part of a company with a strong heritage, solid financials, and promising growth prospects in the engineering and digital solutions sector.
Contact Information: For more details, investors can reach out to Tata Technologies Limited at their Pune office or contact the IPO registrar, Link Intime India Private Ltd, through their provided contact details.
Tata Technologies IPO:
| Event | Date |
|---|---|
| IPO Opening Date | November 22, 2023 |
| IPO Closing Date | November 24, 2023 |
| Basis of Allotment Date | November 30, 2023 |
| Initiation of Refunds | December 1, 2023 |
| Credit of Shares to Demat | December 4, 2023 |
| Listing Date | December 5, 2023 |
| Cut-off for UPI Mandate | 5 PM on November 24, 2023 |
These dates provide a timeline for the various stages of the IPO process, from the opening of the offer to the listing of the shares on the stock exchanges.
Check Upcoming IPO here
Important figures related to the Tata Technologies Limited IPO:
| Description | Figure |
|---|---|
| Total Issue Size | ₹3,042.51 Crores |
| Number of Shares Offered | 60,850,278 Shares |
| Price Band per Share | ₹475 to ₹500 |
| Face Value per Share | ₹2 |
| Minimum Lot Size | 30 Shares |
| Minimum Investment (Retail) | ₹15,000 |
| Minimum Investment (sNII) | ₹210,000 |
| Minimum Investment (bNII) | ₹1,005,000 |
| Pre-Issue Share Holding | 66.79% |
| Post-Issue Share Holding | 55.39% |
This table includes key financial and structural details of the IPO, such as the total issue size, price band, lot size, and the minimum investment required for different categories of investors. It also shows the change in shareholding percentage before and after the issue.
Frequently Asked Questions
1. What is Tata Technologies Limited IPO?
- Tata Technologies Limited IPO is a public offering where the company is offering 60,850,278 equity shares to the public. The IPO is entirely an offer for sale by existing shareholders.
2. When will the Tata Technologies IPO open and close for subscription?
- The IPO is scheduled to open on November 22, 2023, and close on November 24, 2023.
3. What is the price band of the Tata Technologies IPO?
- The price band for the IPO is set at ₹475 to ₹500 per share.
4. What is the minimum lot size for the IPO?
- The minimum lot size for the IPO is 30 shares.
5. What is the minimum investment amount required for retail investors in this IPO?
- Retail investors need to invest a minimum of ₹15,000, which corresponds to one lot of 30 shares at the upper end of the price band.
6. How can I apply for the Tata Technologies IPO?
- Investors can apply for the IPO through their brokerage account using the ASBA (Application Supported by Blocked Amount) process or through UPI for retail investors.
Tata Technologies IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: tatatechnologies.ipo@linkintime.co.in
Website: https://linkintime.co.in/mipo/ipoallotment.html