Tata Technologies IPO Subscription Last Day: The Tata Technologies IPO turned out to be a robust success for the Tata Group because the Rs 3,042.51-crore supply noticed 16.22 occasions subscription with bids coming in for 73 crore fairness shares in opposition to a difficulty measurement of 4.5 crore on November 24, the ultimate day of subscription.
The Rs 3,042.51 crore public supply is fully a proposal-for-sale of 6.08 crore shares, which is 15 per cent of the paid-up capital. Tata Technologies IPO hit the Indian major market on 22, November 2023. The IPO subscription will stay open until 24, November 2023 i.e. until Friday this week.
Tata Technologies IPO: Subscription Status
On Day 3, of the final day of bidding, certified institutional patrons and excessive internet-value people (non-institutional traders), who’ve 50 p.c and 15 p.c reservation within the internet problem, purchased 8.62 occasions and 35 occasions their allotted parts.
Even retail traders, Tata Technologies workers and Tata Motors shareholders additionally appeared aggressive within the supply, subscribing 12.2 occasions, 2.58 occasions and 21.63 occasions the portion put aside for them, which is 35 p.c of the web problem, 20.28 lakh shares and 60.85 lakh shares reserved within the problem.
Tata Technologies IPO: Price Band
The three-day problem, which runs until November 24, has a worth band of Rs 475-500 per share with lots measurement of 30 fairness shares and its multiples thereof. Analysts peg the put up problem market cap between Rs 19,269 crore and Rs 20,283 crore.
Tata Technologies IPO: Important Dates
Tata Technologies IPO date of opening is 22, November 2023 and it might stay out there for bidding until 24, November 2023. Tata Technologies IPO allotment date is most definitely on 27, November 2023 whereas the most definitely Tata Technologies IPO itemizing date is 29, November 2023.
Tata Technologies IPO: Lot Size
Tata Technologies IPO candidates will be capable to apply in tons and one lot of the general public problem would comprise 30 firm shares. So, a retail investor would require not less than Rs 15,000 ( Rs 500 x 30) to use for this a lot-awaited public problem.
Tata Technologies IPO: About the Company
Incorporated in 1994, Tata Technologies is a world engineering providers firm providing product improvement and digital options, together with turnkey options, to international authentic tools producers (OEM) and their tier 1 suppliers. Backed by Tata Motors, the corporate boasts in depth data within the automotive sector and has expanded its experience into aerospace and heavy development equipment, enhancing its business alternatives. As of September 2023, it had 12,451 workers.
Tata Technologies IPO: Financials
On the monetary entrance, the corporate reported a turnover of Rs 2,381 crore, Rs 3,530 crore and Rs 4,414 crore for FY21, FY22 and FY23, respectively, on a consolidated foundation. It posted a internet revenue of Rs 239 crore, Rs 427 crore and Rs 624 crore, respectively, for the aforementioned interval.
Tata Tech’s development trajectory over FY16-23 stays slower than friends’, however has seen enchancment within the final three years due to traction in choose accounts. Weakness in a big consumer in H1FY24 resulting from close to completion of the big full-automobile improvement initiatives might weigh on the corporate’s close to-time period efficiency which, is satisfactorily captured within the IPO valuations, Emkay Global mentioned in a notice.
Tata Technologies IPO: GMP
Tata Technologies IPO shares traded at a 80 p.c premium over the higher worth band, growing from 70 p.c premium couple of days again, within the gray market, analysts on anonymity mentioned. The gray market is an unofficial platform for buying and selling within the IPO shares until the itemizing.
Generally, traders make use of the gray market premium to guess the anticipated itemizing worth of any IPO.
Tata Technologies IPO: Should you Invest?
Giving ‘subscribe’ tag to Tata Technologies IPO Ventura mentioned, “With the gradual recovery in the global economy, rising manufacturing capex and shift in manufacturing from US/Europe/China to India due to cost inflation and China+1 strategy, we are expecting strong in the TTECH’s financial performance in the coming years. At the IPO price of INR 500 (upper price band), TTECH is valued at a TTM P/E of 28.3X. Considering the growth opportunities and strong fundamentals of TTECH, we recommend a SUBSCRIBE rating for this IPO.”
Atul Parakh CEO of Bigul, mentioned: “TATA Technologies will be the IPO to monitor in the coming week, as everyone has been expecting. The IPO has a face value of Rs 2 and a reasonable valuation comfort compared to its peers KPITTECH and TATAELXI.”
“TATA also backs the company, which has good financials and potential. Investors’ interest is also influenced by the possibility of large listing gains, which is a big element in retail interest in the company.”
Under the IPO, Tata Technologies is obtainable at a reduction to its friends, in accordance with IIFL Securities. The IPO valuation implies a trailing PE of 28 occasions as in opposition to 30-90 occasions for pure-play India-based peer ER&D service suppliers, the brokerage mentioned in a analysis notice.
“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,” mentioned IIFL Securities, which had assigned a ‘subscribe’ ranking to the Tata group problem.
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