Tata Technologies IPO set its final offer price at Rs 500 per equity share

In a regulatory filing on Saturday 25 November 2023, Tata Motors confirmed that Tata Technologies' Initial Public Offering (IPO) is set at an offer price of Rs 500 per equity share with each face value at Rs 2.

The IPO size totals ₹30,425.14 million, including an offer for sale of 46,275,000 Equity Shares by Tata Motors amounting to Rs 23,137.50 million, 9,716,853 Equity Shares by Alpha TC Holdings Pte. Ltd. amounting to Rs 4,858.43 million, and 4,858,425 Equity Shares by Tata Capital Growth Fund I, which amount up to Rs 2,429.21 million, subject to the finalization of the basis of allotment, according to a statement by Tata Motors.

The highly anticipated Tata Technologies IPO opened for subscription on 22 November 2023, for three days. With a price range of Rs 475–Rs 500 and no fresh issue component, the IPO garnered significant interest.

As of 5 PM on Saturday, 25 November 2023, the issue was oversubscribed an impressive 69.43 times, with bids totaling Rs 1.56 lakh crore for an issue size of Rs 2,200 crore. This excludes the anchor portion. Qualified institutional bidders subscribed 203.41 times, while non-institutional investors bid 62.11 times.

Tata Technologies shares are scheduled to be listed on both the BSE and NSE on Thursday, 30 November 2023.

Tata Technologies, a subsidiary of Tata Motors, is a manufacturing-focused Engineering Research & Development (ER&D) company specializing in the automotive industry. With 12,451 employees and a revenue of Rs 25.23 billion in 6MFY24, or the first 6 months of the Financial Year of 2023-2024, the company derives 88% of its revenue from the automotive segment, witnessing a 41% CAGR growth between 2021-2023.

Retail investors, Tata Technologies' employees, and Tata Motors' shareholders subscribed 16.50 times, 3.7 times, and 29.2 times, respectively, with a 35% reservation in the net issue for these subscribers.

Ahead of its IPO, Tata Technologies raised Rs 791.05 crore. Notable investors in the anchor portion include Goldman Sachs, Government Pension Fund Global, BNP Paribas Funds, and others.

Investors can check their Tata Technologies IPO application status online through the BSE website or the official registrar's website. JM Financial, Citigroup Global Markets India, and BofA Securities India are the lead managers, while Link Intime India is the registrar for the issue.