Tata technology ipo: Should you apply?

Tata technology ipo : know about the price,lot size,biding date,listing date and more…

The year end of 2023 has been good opportunity for invester and the next action from the Tata Group is, too. The much-anticipated Tata Technologies initial public offering (IPO) is scheduled to launch on November 22, 2023.

About Tata Technologies

Tata Technologies is a division of Tata Motors, having been established in 1994. It is a top-performing corporation in its field and a leading global provider of engineering services.

provides a wide range of digital solutions and product development, optimizing the processes. The corporation is heavily involved in manufacturing-focused engineering, research and development, and other related areas, with a primary focus on the automotive, aerospace, and industrial heavy machinery industries.

Jm Financial Limited, Citigroup Global Markets India Private Limited and Bofa Securities India Limited are the book running lead managers of the Tata Technologies IPO, while Link Intime India Private Ltd is the registrar for the issue.

Important things to know about Tata technology ipo

IPO Date		22 November, 2023 to 24 November, 2023
Price Band		Rs 475 to Rs 500 per share
Face Value		Rs 2 per share
Lot Size		30 Shares
Total Issue Size		60,850,278 shares (aggregating up to Rs 3,042.51 Cr)
Offer for Sale		60,850,278 shares of Rs 2 (aggregating up to Rs 3,042.51 Cr)
Listing date		Tata Technologies’ shares trading will start on 5 December 2023, according to the IPO schedule.

Key Performance Indicator

Offer details

Through the IPO at the higher price band, the company hopes to raise about Rs 3,042.51 crores.

The offering would include an offer by the promoters and investors to buy the business, as per the plan.

° In the offer-for-sale, promoter Tata Motors would sell 4.62 crore equity shares, valued at Rs 2,314 crore.

° Traders For a total of Rs 486 crore, Alpha TC Holdings Pte Ltd will sell 97.17 lakh shares. Tata Capital Growth Fund I is going to sell 49 lakh shares at a price of 243 crore rupees.

°Tata Tech has set aside 60.85 lakh shares for Tata Motors’ shareholders and 20.28 lakh shares for its staff.

Tata Technologies Share Price & lot size

Tata Technologies has fixed the price band for the issue at Rs 475-500 per share. Note, at the upper price band, the company’s valuation stands at Rs 20,283 crore.

For the Tata Tech IPO, the investors can bid for a minimum of 30 equity shares and multiples of 300 post that.

Therefore, the minimum investment by retail investors would be Rs 14,250[(30 (Lot size) x 475 (lower price band)]. Note at the upper end, the bidding amount will increase to Rs 15,000.

Company Financials

As per the company’s statements, Tata Technologies reported 42.8% on-year growth in consolidated net profit at Rs 624 crores for the year ended March 2023. Its revenue increased by 25.81%.

Here is a brief break-up of the Financials of Tata Technologies (in Rs crores)-

Tata technology ipo review:

• TTL operates within the ER&D sector as part of the Tata group, serving significant OEM clients.

• The company has consistently shown growth in both its revenue and profits during the mentioned periods.

• Looking at the FY24 earnings on an annualized basis, the issue seems to be fairly priced.

• The Tata group is widely recognized as “investor-friendly” by investors from various backgrounds.

• Don’t overlook the chance to acquire Tata group shares at the current offered price, as perceptive investors.