Tata Technologies Limited, established in 1994, holds a significant position as a global leader in engineering services, specializing in product development and digital solutions. Today marks its grand entry into the Indian stock market.

As the market welcomed Tata Technologies on the BSE, its stock debuted at Rs.1,199.95 per share, boasting an exceptional premium of 139.99% compared to its initial public offering price of Rs.500 per share. Simultaneously, the stock's NSE debut at Rs.1,200 per share reflected an impressive 140% premium. With this, the company's market capitalization reaches a substantial Rs.48,678 crore.

The IPO was orchestrated by JM Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited as book-running lead managers. Link Intime India Private Limited served as the issue's registrar.

IPO Proceeds

The company plans to utilize the net proceeds from the issue for the following objectives: capitalize on the benefits of listing Equity Shares on the Stock Exchanges and facilitate the Offer for Sale of up to 95,708,984 Equity Shares by the Selling Shareholders.

Company Profile

Established in 1994, Tata Technologies Limited is a distinguished global engineering services firm specializing in product development and digital solutions. Their extensive suite of services, including turnkey solutions, caters to original equipment manufacturers (OEMs) and tier-1 suppliers worldwide.

The core objective of Tata Technologies revolves around enhancing customer value by contributing to the creation of products that prioritize safety, cleanliness, and overall improvements in end-user quality of life.

Leveraging profound expertise primarily within the automotive sector, Tata Technologies has accumulated valuable insights to extend its services to allied industries such as aerospace, transportation, and heavy construction machinery.

With a global footprint, Tata Technologies unites diverse teams across various regions, each equipped with unique skill sets. Collaborating in real-time, these teams amalgamate their collective expertise to effectively address complex engineering challenges.

Subscription Details

On the IPO's closing day, November 24, 2023, Tata Technologies witnessed a remarkable response, marking a subscription rate of 69.43 times, showcasing a robust demand in comparison to recent IPOs. Notably, the retail category experienced a subscription of 16.50 times, the QIB category reached an impressive 203.41 times, and the NII category achieved a subscription rate of 62.11 times.

Securing an amount of Rs.791.05 crore from various anchor investors, Tata Technologies allotted 1.58 crore equity shares at Rs.500 per share. These anchor investors are subject to a complete lock-in period until April 3, 2024.

The IPO price range was fixed between Rs.475 and Rs.500, featuring a face value of Rs.2 per share and a lot size of 30 shares. The total size of the IPO amounted to Rs.3,042.51 crore, finalizing the share issue price at Rs.500 per share.

Financial Performance

The Bottom Line

Investors are confronted with a pivotal decision regarding their Tata Technologies shares. Those aiming for immediate gains have already profited substantially, witnessing a remarkable 140% return from the listing day compared to the final issue price. For individuals eyeing short-term gains, considering closing their positions might be a prudent move.

On the other hand, investors with a greater appetite for risk might contemplate retaining their shares for the medium to long term. Given the company's association with the esteemed Tata Group, this strategy could potentially yield substantial benefits over an extended period.

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