Tata Technologies Ltd IPO 2023 – Dates, Price Band, GMP, Lot Size, Shareholder Quota and Subscription Details
This post was most recently updated on November 21st, 2023
The much-anticipated Tata Technologies Ltd. IPO will be open for subscription on November 22, 2023. As a leading global engineering services company, Tata Technologies has been making waves in the automotive industry and beyond. Let’s dive in and explore what Tata Technologies IPO means for potential investors.
In this article, we will look deep into Tata Technologies Ltd IPO Details, Dates, Strengths, Weaknesses, Grey Markey Premium (GMP), Price Band, Financials, and whether you should invest in the IPO.
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Page Contents
Tata Technologies Ltd IPO Dates
| Start Date | November 22, 2023 |
| End Date | November 24, 2023 |
| Allocation Date | November 30, 2023 |
| Initiation of Refunds | December 1, 2023 |
| Credit of Shares to Demat | December 4, 2023 |
| Listing Date | December 5, 2023 |
Consider reading: How to Check Tata Technologies IPO Allotment Status
Tata Technologies Ltd IPO Details: What We Know So Far
| Details | Information |
|---|---|
| IPO Type | Offer for sale (OFS) |
| IPO Size | 9.57 crore shares |
| Face Value | ₹2 per share |
| Price Band | ₹ 475 to ₹ 500 |
| Promoter Selling | Tata Motors |
| Promoter Holding Pre-IPO | 76.69% |
| Promoter Holding Post-IPO | 53.10% |
| QIB Allocation | Not more than 50% of the Net Issue |
| NII (HNI) Allocation | Not less than 15% of the Net Issue |
| Retail Allocation | Not less than 35% of the Net Issue |
Note: The information provided is based on the given details and may be subject to change.
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Tata Technologies Ltd IPO Lot Size
| Category | Lot Size | Min Amount | Max Amount |
|---|---|---|---|
| Retail | 1 – 13 | 15,000 | 195,000 |
| Employee | 1 – 33 | 15,000 | 495,000 |
| Shareholder | 1 – 13 | 15,000 | 195,000 |
| HNI (Small) | 14 – 66 | 210,000 | 990,000 |
| HNI | 67 or more | 1,005,000 | NA |
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Tata Technologies IPO Shareholder Quota
Tata Technologies has allocated a 10% portion specifically for shareholders of Tata Motors who meet certain criteria. Half of the offering is earmarked for major institutional investors. The remaining allocation is divided between individual retail investors and non-institutional investors, with 35% and 15% of the issue reserved for them, respectively.
Here are key facts about Tata Technologies IPO Shareholder Quota:
- Shareholders and DVR Holders of Tata Motors Limited are eligible for participating in the Shareholder category of the IPO.
- The record date set for Tata Motors shareholders to be recognized for IPO participation is November 13, 2023.
- Investors can apply for a maximum amount of ₹2,00,000 in the Shareholder category, which is separate from applications in the Retail or High Net-worth Individual (HNI) categories.
- Eligible Shareholders have the flexibility to apply in both the Retail and HNI categories in addition to the Shareholder category.
- For eligible Shareholders, it is permissible to submit two applications: one under the Shareholder category and the other in either the Retail or HNI category.
- Employees of the company who are also eligible Shareholders can apply in the Employee category, in addition to the other categories, with the condition that their total application in the Employee category should not exceed ₹2,00,000.
- The allocation of shares within the Shareholder category will be determined on a proportional basis, ensuring a fair and equitable distribution among applicants.
About Tata Technologies Ltd
Founded in 1989, Tata Technologies Ltd has established itself as a global leader in engineering services, offering product development and digital solutions to Original Equipment Manufacturers (OEMs) and their tier 1 suppliers.
With deep-rooted expertise in the automotive industry, the company has expanded its reach to adjacent industries such as aerospace, transportation, and construction heavy machinery (TCHM).
The company’s business lines are categorized into services and technology solutions, providing a comprehensive portfolio to meet the diverse needs of its clients.
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Tata Technologies Ltd IPO Strengths and Risks: A Balanced Perspective
Like any investment, the Tata Technologies IPO comes with its own set of strengths and risks. Let’s take a look at both sides of the coin to help you make an informed decision.
Strengths
- Industry Expertise: The company’s deep expertise in the automotive industry sets it apart from competitors.
- EV Capabilities: Tata Technologies has differentiated capabilities in Electric Vehicles (EVs), a rapidly growing sector.
- Digital Capabilities: The company boasts strong digital capabilities, bolstered by proprietary accelerators.
- Global Presence: Tata Technologies has a diversified global presence and partners with some of the world’s biggest manufacturing companies.
- E-Learning Platform: The company’s proprietary e-learning platform leverages its manufacturing domain knowledge, tapping into large upskilling and reskilling markets.
Risks
- Client Concentration: A significant portion of the company’s revenues comes from its top 5 clients, which could pose a risk if their businesses deteriorate.
- Sector Dependence: The company’s revenue is heavily dependent on the automotive sector, making it vulnerable to economic slowdowns in this segment.
- Talent Dependence: The company’s success hinges on its skilled engineers and management team, and a failure to retain or attract talent could impact profitability.
Tata Technologies Ltd Financial Performance
A glance at Tata Technologies Ltd’s financial performance over the past three years reveals a promising trend. Here’s a snapshot:
| Metric | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue from Operations | ₹3,529.58 crores | ₹2,380.91 crores | ₹2,852.05 crores |
| EBITDA | ₹694.46 crores | ₹430.54 crores | ₹515.36 crores |
| EBITDA Margin (adjusted) | 18.29% | 16.20% | 16.50% |
| EPS | ₹10.77 | ₹5.89 | ₹6.20 |
| Current Assets | ₹2,980.17 crores | ₹2,387.50 crores | ₹1,349.35 crores |
| Current Liabilities | ₹1,695.68 crores | ₹1,182.17 crores | ₹452.66 crores |
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Reasons to Invest in Tata Technologies Ltd.’s IPO
Here are the key reasons to invest in Tata Technologies Ltd. IPO:
- The name Tata carries years of trust and legacy.
- The mid-cap company is a global engineering company that primarily offers services and technology solutions to leading OEMs and their tier-I suppliers.
- Tata Technologies is one of the leading players in automotive ER&D services globally.
Tata Technologies Ltd IPO Grey Market Premium (GMP)
The latest Tata Technologies Ltd IPO Grey Market Premium (GMP) is Rs 280 as of today. Here is the history of Tata Technologies IPO GMP:
Note: The Tata Technologies Ltd IPO Grey Market Premium (GMP) is subject to market conditions and may vary over time. This is not official information and should be interpreted carefully for your investment decisions.
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Closing Thoughts on Tata Technologies Ltd IPO
The Tata Technologies IPO presents a unique opportunity for investors to participate in the growth story of a leading global engineering services company.
As always, it’s crucial to thoroughly analyze the company’s strengths, risks, and financial performance before making an investment decision.
Stay tuned for more updates on the Tata Technologies IPO and other exciting developments in the Indian stock market. Until then, happy investing!
Disclaimer: This blog post is for informational purposes only and should not be taken as investment advice. Always do your own research or consult with a professional advisor before making investment decisions.
FAQs on Tata Technologies Ltd IPO
What are the dates for Tata Technologies Ltd’s IPO?
The dates for Tata Technologies Ltd IPO have not been announced yet. The IPO is likely to open in October 2023.
What is the Price band for Tata Technologies Ltd’s IPO?
The Price band for Tata Technologies Ltd.’s IPO has not been announced yet. The Price band is expected to be retail investor-friendly to encourage more participation.
What is the shareholder quota for Tata Motors in Tata Technologies IPO?
The shareholder quota for Tata Motors in Tata Technologies IPO is 10%. This precise allocation allows eligible Tata Motors shareholders a designated portion of the shares during the initial public offering, reflecting Tata Technologies’ commitment to its parent company investors.
How many shares of Tata Technologies will Tata Motors shareholders get?
Tata Motors shareholders are allocated a total of 60,85,027 shares in Tata Technologies, which represents 10 per cent of the company’s public offer. This specific allotment is part of a reserved share pool exclusively for the shareholders of Tata Motors.
Who can apply Tata Technologies IPO?
Eligible individuals and HUFs who are public equity shareholders of Tata Motors Limited (TML), including those holding Ordinary Shares and ‘A’ Ordinary Shares, can apply for the Tata Technologies IPO. There is a specific reservation of up to 10% of the offer for such shareholders.
Is it good to buy Tata Technologies IPO?
Tata Technologies has exhibited robust financial health, with a consistent 10-year average dividend payout of 44%, aligning with sector norms. As of FY2023, it boasted a significant cash reserve of ₹11.9 bn. While past performance is favorable, investing in its IPO should consider this track record and the prospect of sustained payouts, alongside thorough market analysis and individual investment goals.
How to buy Tata Tech IPO?
To buy Tata Tech IPO online, you can subscribe through an online brokerage platform. Open an account with a registered broker, complete the KYC process, and place an IPO order. Ensure you have the necessary funds in your trading account and follow the IPO application instructions provided by your broker. Participating in the Tata Technologies IPO can provide exciting investment opportunities.
Which was the last Tata IPO?
The last Tata IPO was Tata Consultancy Services (TCS) in July 2004. TCS has emerged as a significant wealth creator in the Indian stock market, with a market capitalization of approximately Rs 11.7 lakh crore. It continues to be one of the leading conglomerates, contributing to the growth of Dalal Street.
What is the Grey Market Premium (GMP) for Tata Technologies IPO?
As of November 2023, The latest Grey Market Premium for Tata Technologies IPO is Rs 280.
