Tata Technologies IPO: Driving Innovation and Growth

Unveiling Technological Potential:

*Tata Technologies IPO* has emerged as a beacon of technological prowess, representing a book-built issue of Rs 3,042.51 crores. This offering is exclusively an offer for sale, comprising 6.09 crore shares.

Strategic Bidding and Allotment:

Initiating on November 22, 2023, and concluding on November 24, 2023, the Tata Technologies IPO witnessed a surge in interest. The allotment was finalized on Tuesday, November 28, 2023, and the shares commenced trading on both BSE and NSE on November 30, 2023.

Valuation Insights:

With a price band of ₹475 to ₹500 per share, the IPO attracted investors with a minimum lot size of 30 shares, requiring an investment of ₹15,000. For seasoned non-institutional investors (sNII) and institutional investors (bNII), the minimum lot size investments stood at 420 shares (₹210,000) and 2,010 shares (₹1,005,000), respectively.

Market Performance Highlights:

The stock showcased resilience in the market, opening at ₹1,180.00, with a high and low of ₹1,184.90 and ₹1,169.15, respectively. The 52-week performance displayed robustness, reaching a high of ₹1,400.00 (Nov 30, 2023) and a low of ₹1,151.15 (Dec 04, 2023). The total traded value on January 15, 2024, amounted to 7,57,174.

IPO Essentials:

• - IPO Duration: November 22, 2023, to November 24, 2023
• - Listing Date: November 30, 2023
• - Face Value: ₹2 per share
• - Price Band: ₹475 to ₹500 per share
• - Lot Size: 30 Shares
• - Total Issue Size: 60,850,278 shares, aggregating up to ₹3,042.51 Cr
• - Offer for Sale: 60,850,278 shares of ₹2, aggregating up to ₹3,042.51 Cr
• - Issue Type: Book Built Issue IPO
• - Listing At: BSE, NSE

Ownership Landscape:

The pre-issue and post-issue shareholding remains constant at 405,668,530 shares.

Reservation Dynamics:

The IPO catered to various investor categories:

• - QIB: 17.33%
• - NII: 13.00%
• - bNII (> ₹10L): 8.67%
• - sNII (< ₹10L): 4.33%
• - Retail: 30.33%
• - Employee: 3.33%
• - Others: 10.00%

Investor Allocation Details:

The meticulous allocation included 15,821,071 shares for anchor investors, 10,547,382 shares for QIBs, 7,910,537 shares for NIIs, and 18,457,919 shares for retail investors. The offering extended to employees, with 2,028,342 shares, and other categories with 6,085,027 shares.

Anchor Investor Triumph:

The Tata Technologies IPO made a resounding start by raising Rs 791.05 crores from anchor investors on November 21, 2023.

IPO Timeline Highlights:

• - IPO Open Date: Wednesday, November 22, 2023
• - IPO Close Date: Friday, November 24, 2023
• - Basis of Allotment: Tuesday, November 28, 2023
• - Initiation of Refunds: Wednesday, November 29, 2023
• - Credit of Shares to Demat: Wednesday, November 29, 2023
• - Listing Date: Thursday, November 30, 2023
• - Cut-off time for UPI mandate confirmation: 5 PM on November 24, 2023

About Tata Technologies Limited:

Founded in 1994, *Tata Technologies Limited* is a prominent player in providing product development and digital solutions to Original Equipment Manufacturers (OEMs) and their Tier-1 suppliers. The company operates through two business verticals: services and technology solutions. As of September 30, 2023, it boasts 19 global delivery centers and employs 12,451 people.

Financial Snapshot:

As of September 30, 2023:

• - Assets: ₹5,142.42 Crore
• - Revenue: ₹2,587.42 Crore
• - Profit After Tax: ₹351.90 Crore
• - Net Worth: ₹2,853.13 Crore

Key Financial Indicators:

• - RoNW: 20.87%
• - EPS (Rs): 15.37
• - P/E (x): 28.82

Objects of the Issue:

The primary objectives are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and to carry out the Offer for Sale of up to 95,708,984 Equity Shares by the Selling Shareholders.

Expert Analysis:

Despite being reasonably priced, investors are encouraged to seize this opportunity for medium to long-term rewards.

IPO Subscription Status:

As of November 24, 2023, the Tata Technologies IPO witnessed overwhelming interest, subscribing 69.43 times. Notable figures include 203.41 times in the QIB category, 62.11 times in the NII category, and 16.50 times in the retail category.

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of November 24, 2023.

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