Tata Technologies was the most sought after issues among the five IPOs that are currently on. The ₹3,043-crore IPO was subscribed 6.54 times. Tata Technologies is the first company to hit the capital market in 20 years from Tata Group after TCS. The company has fixed the price band as ₹475-500. The entire issue is an offer-for-sale and the market lot is 30 shares. Tata Technologies has reserved 20.28 lakh shares for its employees and 60.85 lakh shares for Tata Motors shareholders.
Non institutional investors (NIIs) were the most keen as their portion was subscribed 11.69 times, followed by retail investors by 5.42 times. Qualified Institutional Buyers (QIBs) portion was subscribed 4.08 times and Tata Tech IPO’s employee portion was received bids for 1.10 times. The company has reservation for Tata Motors shareholders too and that portion was subscribed 9.3 times.
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Promoter Tata Motors will offload 4.62 crore equity shares, which is worth ₹2,314 crore in the offer-for-sale. Investors Alpha TC Holdings Pte Ltd will be selling 97.17 lakh shares worth ₹486 crore. Tata Capital Growth Fund I will sell 49 lakh shares worth ₹243 crore.
As much as 50 per cent of the issue is reserved for qualified institutional bidders, 15 per cent for non-institutional investors, and the rest 35 per cent for retail investors.
Tata Technologies has raised ₹791.05 crore as part of IPO process on Tuesday. The board of Tata Technologies has finalised allocation of 1.58 crore shares to anchor investors at ₹500 a share.
Among the marquee investors included Goldman Sachs, Government Pension Fund Global, BNP Paribas Funds, Prudential Assurance Company, HSBC Global, Florida Retirement System, Oaktree Emerging Markets Equity Fund, Brinker Capital Destinations Trust, Great Eastern Life-Singapore Life Insurance Fund, RBC Asia Pacific Ex-Japan Equity Fund and Copthall Mauritius Investment.
Domestic mutual funds and insurance companies, including SBI Mutual Fund, ICICI Prudential Mutual Fund, Nippon Life, Aditya Birla Sun Life Trustee, Franklin Templeton Mutual Fund, SBI Life Insurance Company, Kotak Mutual Fund, DSP Mutual Fund, HDFC Life Insurance Company, Mirae Asset Mutual Fund, Bandhan Mutual Fund, Edelweiss Trusteeship, Motilal Oswal Mutual Fund, Sundaram Mutual Fund, Axis Mutual Fund, Canara Robeco Mutual Fund, Kotak Mahindra Life Insurance Company, JM Financial Mutual Fund, Bajaj Allianz Life Insurance Company, and Bharti Axa Life Insurance Company also participated in the anchor portion.
Incorporated in 1994, Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEM) and their tier 1 suppliers.
Backed by Tata Motors, the company boasts extensive knowledge in the automotive sector and has expanded its expertise into aerospace and heavy construction machinery, enhancing its commercial opportunities. As of September 2023, it had 12,451 employees