Tata Technologies IPO: The initial public offering (IPO) of Tata Motors’ subsidiary, Tata Technologies Ltd, has received strong investors’ response with a record number of IPO applications. The Tata Technologies IPO, which opened for subscription on November 22, will close today, November 24.
Amid huge interest from investors across the board, Tata Technologies IPO got oversubscribed heavily within hours of opening. The enthusiasm over Tata Technologies IPO is huge as it is the first IPO from the Tata Group in nearly two decades.
Tata Technologies is a subsidiary of automobile major Tata Motors and is a pure-play manufacturing focused Engineering Research & Development (ER&D) company, primarily focused on the automotive industry.
Let us check Tata Technologies IPO subscription status, GMP today and other key details.
Tata Technologies IPO Subscription Status
Tata Technologies IPO has been subscribed 18.77 times so far on Friday, the third and the last day of the bidding process. The public issue received bids for 84.50 crore equity shares as against 4.50 crore shares on the offer, as per data available on NSE at 11:10 am.
The issue has been subscribed 12.88 times in the retail category and 13.68 times in the Qualified Institutional Buyers’ (QIB) category, while the Non-Institutional Investors’ (NII) portion has been booked 39.92 times so far.
Tata Technologies IPO has created a record of attracting the highest number of applications on its issue among private sector companies. With more than 59 lakh applications so far, Tata Technologies IPO has overtaken major private companies such as Zomato, Reliance Power, FSN E-Commerce Ventures (Nykaa), and others.
Tata Technologies IPO GMP today
Tata Technologies IPO GMP today, or grey market premium today, increased to ₹405 per share, which is 81% higher than the issue price, market observers said.
This indicates that the Tata Technologies shares are trading at a premium of 81% at ₹905 apiece in the grey market as compared to the issue price of ₹500 per share.
Considering the GMP today and the issue price, Tata Technologies shares are estimated to be listed at ₹905 apiece on the stock exchanges.
Should you subscribe Tata Technologies IPO?
Most analysts have advised subscribing to the Tata Technologies IPO on the back of the company’s improving financials, strong brand legacy and reasonable valuations.
Over FY20-23, the company’s sales grew by 15.7% and came at ₹4,414 crore in FY23. EBit margins have also improved from 13% in FY20 to 16.5% in FY23.
“The company plans to strengthen relationships with existing clients, target new high potential accounts with large annual ER&D spends and new energy vehicle companies, to drive the growth. ROE and ROCE also improved and stood at 20.9% and 24.3% respectively for FY23. With this, at the given upper price band of issue of ₹500, Tata Technologies is offered at annualized H1FY24 PE of 28.8x which we feel is attractive. We recommend subscribing to the issue," brokerage firm Nirmal Bang said.
SBI Securities believes Tata Technologies is well placed to encash on the growth opportunities in ER&D space and looking at the relatively cheaper valuations, it recommend investors to subscribe to the issue.
“At the upper price band of ₹500, Tata Technologies is trading at 32.5x FY23 P/E multiple. Its peers are trading at a relatively expensive valuation with FY23 P/E multiple of 108.9x for KPIT, 68.5x for Tata Elxsi and 40.1x for LTTS," SBI Securities noted.
Tata Technologies IPO Details
Tata Technologies IPO opened for subscription on November 22 and will close today on November 24. The IPO allotment is expected to be finalized on Thursday, November 30.
Tata Technologies shares will list on BSE, NSE with tentative listing date fixed on December 5.
Tata Technologies IPO is…