Tata Technologies offer price finalised at Rs 500 per share

Tata Technologies' Initial Public Offering (IPO) has been completed at a final offer price of Rs 500 per face value of Rs 2 equity share, according to a regulatory filing by Tata Motors on Saturday.

Tata Motors issued the following statement: "The total amount of the initial public offering (IPO) is 30,425.14 million. It consists of the following: an offer for sale of 46,275,000 equity shares by the Company for Rs 23,137.50 million; 9,716,853 equity shares by Alpha TC Holdings Pte. Ltd. for Rs 4,858.43 million; and 4,858,425 equity shares by Tata Capital Growth Fund I for Rs 2,429.21 million. The basis of allotment remains to be finalized."

Subscriptions for the highly anticipated IPO of The Tata Group began on November 22, 2023, and remained open for three days. The Tata Technologies IPO commenced on November 22 at a price range of Rs 475 to Rs 500, exclusive of any newly issued shares.

Excluding the anchor portion, the issue was strongly subscribed 69.43% as of 5:00 PM, with bids totaling Rs 1.56 lakh crore for a size of Rs 2,200 crore. The portion allocated for qualified institutional purchasers received a substantial 203.41 subscriptions, whereas the portion designated for non-institutional investors received 62.11 subscriptions.

On Thursday, November 30th, shares of Tata Technologies will be listed on both the BSE and NSE. 

Tata Technologies, a subsidiary of Tata Motors, is an Engineering Research & Development (ER&D) firm that specializes in the automotive sector and conducts manufacturing-only research and development. Tata Investment Corporation, as of September 30th, holds a 0.33% stake in Tata Motors as a promoter group entity.

As of 6MFY24, Tata Technologies employed 12,451 individuals and generated Rs 25.23 billion in revenue. The automotive sector generates approximately 88% of the total revenue and is projected to expand at a CAGR of 41% between 2021 and 2023.

In addition, shareholders, employees, and retail investors of Tata Technologies and Tata Motors responded positively to the offering by subscribing 29.2 times, 16.50 times, and 3.7 times, respectively. A 35% reservation was made in the net issue specifically for these subscribers.

The Rs 791.05 crore raised by Tata Technologies precedes its IPO on Tuesday. High-profile investors that participated in the investment initiative included Copthall Mauritius Investment, Oaktree Emerging Markets Equity Fund, Government Pension Fund Global, BNP Paribas Funds, Prudential Assurance Company, HSBC Global, and Florida Retirement System. Additionally, Brinker Capital Destinations Trust and Great Eastern Life-Singapore Life Insurance Fund were also present.

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, and Kotak Mahindra Life Insurance Company are among the domestic mutual funds and insurance companies that are supported by this organization.

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Tata Technologies IPO allotment status

After logging in to the BSE website or the website of the official registrar of the public offer, applicants can view the status of their applications online.

The Tata Tech IPO is being led managed by JM Financial, Citigroup Global Markets India, and BofA Securities India. Link Intime India is serving as the registrar for the issue.