Tata Technologies IPO: Issue subscribed over 69 times on final day
Tata Technologies IPO LIVE: Tata Motors subsidiary Tata Technologies' initial public offering (IPO)—the first listing from the salt-to-software Tata conglomerate in nearly two decades—was subscribed over 69.4 times on the final day. The public offer registered a total subscription of 6.5 times at the end of the first day. Tata Technologies is a provider of engineering and product development digital services.
The Tata Group company has fixed the price band at Rs 475-500 per share for its Rs 3,042-crore IPO, which comprises an offer for sale (OFS).
EDITOR'S TAKE | Buy for a big listing gain; Tata Tech stock may double very soon
Zee Business Managing Editor Anil Singhvi suggests applying for the Tata Technologies IPO for a big listing gain and for the long term.
He has pointed out the following key points about the Tata group company:
Positive
- Promoters are strong and experienced
- The company enjoys a deep relationship with clients across the globe
- It has strong digital and technology skills
- It is a debt-free company with strong cash flow
- The firm has an impressive financial track record
- It has strong growth prospects
- The IPO is available at very attractive valuations
- The stock may double very soon
Negative
- One-third of the company's business comes from the Tata group
- There are a few group companies that operate in similar businesses
Most analysts have assigned a 'subscribe' rating to the Tata Technologies IPO.
Catch all the latest updates on the much-anticipated Tata Technologies IPO here:
Tata Technologies IPO LIVE: Tata Motors subsidiary Tata Technologies' initial public offering (IPO)—the first listing from the salt-to-software Tata conglomerate in nearly two decades—was subscribed over 69.4 times on the final day. The public offer registered a total subscription of 6.5 times at the end of the first day. Tata Technologies is a provider of engineering and product development digital services.
The Tata Group company has fixed the price band at Rs 475-500 per share for its Rs 3,042-crore IPO, which comprises an offer for sale (OFS).
EDITOR'S TAKE | Buy for a big listing gain; Tata Tech stock may double very soon
Zee Business Managing Editor Anil Singhvi suggests applying for the Tata Technologies IPO for a big listing gain and for the long term.
He has pointed out the following key points about the Tata group company:
Positive
- Promoters are strong and experienced
- The company enjoys a deep relationship with clients across the globe
- It has strong digital and technology skills
- It is a debt-free company with strong cash flow
- The firm has an impressive financial track record
- It has strong growth prospects
- The IPO is available at very attractive valuations
- The stock may double very soon
Negative
- One-third of the company's business comes from the Tata group
- There are a few group companies that operate in similar businesses
Most analysts have assigned a 'subscribe' rating to the Tata Technologies IPO.
Catch all the latest updates on the much-anticipated Tata Technologies IPO here:
Latest Updates
IREDA IPO Listing Price NSE, BSE LIVE Updates: Tata Technologies IPO allotment status
Meanwhile, there is a lot of buzz around Tata Technologies IPO. The Rs 3,042.5 crore IPO got subscribed 69.43 times on the final day of subscription on Friday.
Tata Technologies IPO | EDITOR'S TAKE | What are the key reasons behind investors’ bumper response to the first Tata group public offer in nearly two decades? Market wizard Anil Singhvi explains
IPOs को BUMPER रिस्पॉन्स क्यों?
ये Euphoria है या अच्छे शेयरों की चाहत?#ZeeBusiness Live : https://t.co/NCi3cVRFKk#ShareMarket #Trading @ZeeBusiness https://t.co/l9AZiJacrJ
— CA Anil Singhvi Zee Business (@AnilSinghvi_) November 28, 2023
IPOs को BUMPER रिस्पॉन्स क्यों?
ये Euphoria है या अच्छे शेयरों की चाहत?#ZeeBusiness Live : https://t.co/NCi3cVRFKk#ShareMarket #Trading @ZeeBusiness https://t.co/l9AZiJacrJ
— CA Anil Singhvi Zee Business (@AnilSinghvi_) November 28, 2023
Tata Technologies shares to enter listed space on December 1; what can you expect?
Prashanth Tapse of Mehta Equities is of the view that Tata Technologies could see a strong listing gain of over 75 per cent given the overwhelming subscription demand and its investor-friendly pricing. "There is a high possibility that Tata Technologies can be a doubler candidate post-listing. We believe the super listing premium is justified mainly on the back of the Tata parentage tag that enjoys first preference among investors and its unique well established global business model which has been generating healthy margins in the sector it serves," says Tapse.
Tapse recommends winning bidders to book 50 per cent profits over and above the brokerage's expectations and retain the rest of the holding for the long term. The analyst suggests losing bidders to accumulate the stock Tata Technologies on dips from a long-term perspective.
Tata Technologies IPO LIVE updates
Total Subscription - 69.43x
QIB – 203.41x
NII – 62.11x - {(NII 10L+) – 70.67x, (NII 2L-10L) - 44.98x},
Retail – 16.50 {(Employee Reservation) – 3.70x, (Shareholder Reservation) - 29.19x},
Tata Technologies IPO LIVE | Issue subscribed more than 69 times on final day so far
As of 4:30 pm, the Tata group IPO has received bids for as many as 312.4 crore shares as against the 4.5 crore shares on offer, with robust interest from all categories of investors, according to provisional exchange data.
| Investor category | Subscription (No. of times the shares reserved) | No. of shares offered/reserved | No. of shares bid for |
| Qualified institutional buyers (QIBs) | 203.41 | 1,05,47,382 | 2,14,53,93,930 |
| Non-institutional investors (NIIs) | 62.09 | 79,10,537 | 49,12,00,530 |
| Retail | 16.39 | 1,84,57,919 | 30,25,84,350 |
| Employees | 3.66 | 20,28,342 | 74,13,870 |
| Shareholders | 29.1 | 60,85,027 | 17,70,63,330 |
| Overall | 69.37 | 4,50,29,207 | 3,12,36,56,010 |
Tata Technologies IPO Enters Last Day | Issue subscribed more than 15 times so far; retail portion booked nearly 12 times
As of 10:06 am, the issue has received bids for 69.5 crore shares as against the 4.5 crore shares on offer, marking a subscription of 15.4 times, according to provisional exchange data.
| Investor category | Subscription (No. of times the shares reserved) | No. of shares offered/reserved | No. of shares bid for |
| Qualified institutional buyers (QIBs) | 8.6 | 1,05,47,382 | 9,06,48,000 |
| Non-institutional investors (NIIs) | 32.2 | 79,10,537 | 25,44,66,000 |
| Retail | 11.8 | 1,84,57,919 | 21,76,51,860 |
| Employees | 2.5 | 20,28,342 | 51,00,720 |
| Shareholders | 20.9 | 60,85,027 | 12,70,57,980 |
| Overall | 15.4 | 4,50,29,207 | 69,49,24,560 |
Tata Technologies IPO LIVE | First Tata group public offer in nearly two decades subscribed 14.9 times on Day 2; retail portion booked over 11 times
At the end of bidding on Thursday, the second day of the book-building process, the IPO received bids for 66.9 crore shares as against the 4.5 crore shares on offer, according to provisional exchange data.
| Investor category | Subscription (No. of times the shares reserved) | No. of shares offered/reserved | No. of shares bid for |
| Qualified institutional buyers (QIBs) | 8.6 | 1,05,47,382 | 9,01,79,280 |
| Non-institutional investors (NIIs) | 31 | 79,10,537 | 24,54,69,990 |
| Retail | 11.2 | 1,84,57,919 | 20,64,96,480 |
| Employees | 2.4 | 20,28,342 | 47,76,720 |
| Shareholders | 20 | 60,85,027 | 12,18,09,210 |
| Overall | 14.9 | 4,50,29,207 | 66,87,31,680 |
Tata Technologies LIVE Today | First Tata group issue in 19 years all set to enter last day of bidding process today
The Tata Tech IPO, comprising an offer for sale (OFS) worth Rs 3,042.5 crore, opened for subscription on Wednesday, November 22.
Today is the last day to participate in the public offer of Tata Technologies, a subsidiary of the Tata group auto major Tata Motors.
Potential investors can bid for Tata Technologies shares in a price band of Rs 475-500 apiece, in lots of 30 shares, between 10 am and 5 pm today.
Tata Technologies IPO LIVE | Issue subscribed overall 11 times; retail portion booked 9.2 times
As of 1:39 pm, the Tata Tech IPO has received bids for 49.7 crore shares as against the 4.5 crore shares on offer, according to provisional exchange data.
| Investor category | Subscription (No. of times the shares on offer) |
| Qualified institutional buyers (QIBs) | 4.2 |
| Non-institutional investors (NIIs) | 23 |
| Retail | 9.2 |
| Employees | 2 |
| Shareholders | 16.1 |
| Overall | 11.1 |
Tata Technologies IPO LIVE | Tata group company said its FY23 performance surpassed its expectations
Tata Technologies generated strong revenue and operating profit during the course of the year, with expansion in operating margins and cash flows, according to its annual report.
Its operating margin improved by 31 bps on a year-on-year basis to 18.6 per cent for the year ended March 2023.
Its cash position improved from Rs 1,411.6 crore in the financial year 2021-22 to Rs 1,480.7 crore the following year.
The growth in its revenue from services was amongst the highest in its market, according to the annual report.
Tata Technologies IPO LIVE | Here's how the Tata group company fared in 2022-23
Tata Technologies registered 25.1 per cent growth in revenue to Rs 4,414.18 crore in the financial year ended March 2023. Revenue from the sale of services increased 33.2 per cent to Rs 3,535.2 crore, according to the company's annual report.
The strong growth in revenue was despite macroeconomic challenges, the company said.
Its profit after tax (PAT) increased 42.8 per cent to Rs 624 crore for the year.
Tata Technologies IPO LIVE | Issue subscribed 8.4 times so far on Day 2; retail portion booked 7.2 times, NII 15.5 times
As of 10:48 am, the IPO has received bids for a total of 37.6 crore Tata Technologies shares as against the 4.5 crore shares on offer, according to provisional exchange data. Here's how various types of investors have responded to the issue so far:
| Investor category | Subscription (No. of times the shares on offer) |
| Qualified institutional buyers (QIBs) | 4.1 |
| Non-institutional investors (NIIs) | 15.5 |
| Retail | 7.2 |
| Employees | 1.6 |
| Shareholders | 12.1 |
| Overall | 8.4 |
Tata Technologies IPO LIVE | Bidding for second day of bidding process to start at 10 am
The Tata Technologies IPO is all set to the second day of the bidding process in about 50 minutes from now, from 10 am to 5 pm.
Teh subscription window will be available for one more day, on Friday, November 24.
Tata Technologies IPO LIVE | Tata Tech another attractive play in auto ER&D services, says IIFL Securities
Under the IPO, Tata Technologies is available at a discount to its peers, according to IIFL Securities. The IPO valuation implies a trailing PE of 28 times as against 30-90 times for pure-play India-based peer ER&D service providers, the brokerage said in a research note.
"We believe that industry tailwinds for the automotive industry are likely to continue to drive growth for the company in the medium term, while expansion into adjacencies provides upside risks. We recommend subscribing to the IPO, given the valuation discount to peers," said IIFL Securities, which had assigned a 'subscribe' rating to the Tata group issue.
Tata Technologies IPO LIVE | What does Tata Tech do?
Tata Technologies (TTECH) is a major ER&D services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their Tier 1 suppliers.
The company, TTECH, has the second largest auto industry practice among pure-play Indian ER&D services players, after KPIT Tech, and works with seven of the top 10 automotive ER&D spenders, analysts at brokerage IIFL Securities wrote in a research note ahead of the launch of the IPO.
With revenues of $550 million in FY23, Tech Technologies’ revenues have grown at 11 per cent CAGR over FY20-23, with EBIT margins of 16.5 per cent in FY23, according to the brokerage.
Image: Reuters