Tata Technologies IPO Oversubscribed By 6.54x On Day 1 Driven By Strong Bids From HNIs, Retail Investors

Tata Technologies IPO: Tata Group-backed IPO, the first in 19 years, has witnessed a strong response from investors on the first day of the issue. Tata Tech oversubscribed by 6.54 times on Wednesday driven by robust bidding from retail and HNI clients. Also, the institutional and shareholders of Tata Motors showed an impressive appetite for the mega IPO.

Tata Technologies IPO Subscription Status:

As per NSE's data, Tata Tech IPO recorded cumulative bids of 29,43,78,780 equity shares, oversubscribing 6.54 times the initial offered size of 4,50,29,207 equity shares.

Non-institutional investors (NII) aka HNIs portion oversubscribed by a huge 11.69 times, while Retail Individual Investors (RIIs) portion subscribed by 5.42x. Also, a reserved portion for employees and Tata Motors shareholders logged subscriptions of 1.10x and 9.30x respectively. Lastly, the qualified institutional buyers (QIBs) portion also subscribed by 4.08x.

Tata Technologies IPO GMP Today:

Also, on Wednesday, as per the InvestorGrain website, Tata Technologies IPO's last GMP was ₹390, last updated Nov 22nd 2023 08:24 PM. With a price band of 500.00, Tata Technologies IPO's estimated listing price is ₹890 (cap price + today's GMP). The expected percentage gain/loss per share is 78.00%.

Tata Technologies IPO Details:

The company launched its IPO on November 22nd and will be available for bidding till November 24th. The IPO is entirely offered for sale (OFS) of up to 60,850,278 equity shares. Of the total IPO size, 46,275,000 equity shares are offloaded by Tata Motors, 9,716,853 shares by Alpha TC Holdings, and 4,858,425 equity shares by Tata Capital Growth Fund I.

The price band for the IPO is fixed at Rs 475 to Rs 500 per share having a face value of Rs 2 each. The bid lot size is 30 Equity Shares and in multiples thereof.

From the total IPO size, 50% of the shares will be reserved for qualified institutional buyers (QIBs), while 15% to be kept for non-institutional investors, and 35% to be allocated to retail individual investors (RIIs). Additionally, 10% of the offer for subscription by eligible shareholders of Tata Motors.

Ahead of the IPO, the company raised about Rs 791 crore from a total of 67 anchor investors. The company allotted about 1.58 crore shares at the upper price band of Rs 500 apiece to these investors.

Companies like JM Financial, Citigroup Global Markets India and BoFA Securities are acting as the book-running lead managers of the IPO. While Link Intime India is the registrar of the issue.

Tata Technologies Listing:

Post the IPO, the proposed shares of Tata Tech will be listed on BSE and NSE.

After the public offer, Tata Technologies is likely to carry allotment of shares on November 30th, followed by initiation of refunds on December 1st, and credit of shares in demat accounts on December 4th. As per Chittorgarh, Tata Tech is expected to list on December 5, 2023.