Tata Technologies IPO Unlocks Excitement on 22-Nov-2023

Tata Technologies is set to make its debut on Dalal Street with an eagerly anticipated initial public offering (IPO) on 22-Nov-2023. Investors who were unable to engage in the trading of Tata Technologies shares in the unlisted markets will now have the opportunity to participate in the IPO, slated to open next week.

Unusual Trading Restrictions

As per the active dealers in unlisted market, the share transfer of Tata Technologies has been 'barred' since the filing of its red-herring prospectus on November 13. This restriction on trading has prompted surprise and disappointment among analysts and unlisted brokers. Typically, pre-IPO shares are restricted from trade on the allotment day, when the mandatory lock-in period begins. However, Tata Technologies has deviated from this norm.

Narottam Dharawat, founder of Dharawat Securities, expressed surprise at the lack of communication regarding the activation of the lock-in period. Unlisted brokers are unable to transfer shares since the ISIN status of Tata Technologies changed to 'suspended'. Despite the absence of official notifications, dealers project the IPO price band to be around ₹500-525 per share, potentially reaching ₹550, offering room for appreciation.

Tata Technologies is making headlines as the first IPO by the Tata Group in nearly two decades, following Tata Consultancy Services Ltd (TCS). The private market witnessed Tata Technologies shares trading at ₹840-850 before the suspension of trading, with expectations of a robust listing on its debut.

Financial Snapshot

Tata Technologies reported a net profit of ₹351.90 crore and total revenue of ₹2,587.42 crore for the half-year ending September 30, 2023. With a net EPS of ₹8.67 and a return on net worth of 12.33%, the company presents a compelling financial profile.

The IPO comprises an offer-for-sale (OFS) of 6,08,50,278 equity shares, with a face value of 2 for each share. Tata Technologies aims to raise around ₹3,000-3,200 crore and has reserved a 10% quota for Tata Motors' eligible shareholders. Despite the current suspension of trading in the unlisted market, optimism prevails, with expectations of a listing in the range of ₹800-900, mirroring the last unlisted market price.

As Tata Technologies IPO opens for public subscription on November 22, Tata Technologies' strong parentage under the Tata Group, coupled with the excitement surrounding its peers and the buoyant market sentiments, positions it as a highly anticipated offering. Analysts project a fair value of ₹800-900 per share on the listing, reinforcing the positive outlook for this much-awaited IPO.

Tata Technologies IPO Subscription and Closing

The IPO opens for public subscription on November 22 and closes on November 24. The price band will be announced soon. JM Financial, Citigroup Global Markets India, and BofA Securities India are the book-running lead managers, and the registrar is Link Intime India Private Limited.

Check Tata Technologies IPO GMP

About Tata Technologies

Tata Technologies stands out as a prominent global engineering services company, specializing in providing product development and digital solutions to international original equipment manufacturers (OEMs). The range of services offered by the company covers various aspects, including concept design, tear-down and benchmarking, vehicle architecture, body and chassis engineering, electrical and electronics systems, and diagnostics.

With a vast workforce exceeding 11,000 employees, Tata Technologies operates across 18 global delivery centers. The company's expertise lies in delivering comprehensive engineering solutions to meet the evolving needs of OEMs on a global scale.