Tata Technologies IPO
Tata Technologies IPO: Unveiling a Comprehensive Guide to Investing
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Introduction
Tata Technologies is planning to launch its initial public offering (IPO) soon, which will be one of the most awaited IPOs of 2023. The company has already filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in March 2023 and received its approval in July 2023. The IPO will be an offer for sale (OFS) of up to 95,708,984 equity shares by the promoters and selling shareholders. The shares will be listed on both the BSE and NSE.
In this blog post, we will provide you with a complete guide on the Tata Technologies IPO, covering its details, objectives, financials, strengths, risks, valuation, grey market premium (GMP), and more. We will also give you some tips on how to apply for the IPO and what to expect from it.
What are the Details of the Tata Technologies IPO?
The Tata Technologies IPO is expected to take place in August or September 2023, although the exact dates have not been announced yet. The IPO will be an OFS of up to 95,708,984 equity shares, representing 25.29% of the post-offer paid-up equity share capital of the company. The face value of each share is Rs 2.
The OFS will comprise of up to 40,000,000 equity shares by Tata Motors Limited (the promoter), up to 35,000,000 equity shares by Alpha TC Holdings Pte Ltd (a selling shareholder), and up to 20,708,984 equity shares by Tata Capital Financial Services Limited (another selling shareholder). The company will not receive any proceeds from the OFS.
The price band and the lot size of the IPO have not been disclosed yet. However, based on some reports12, the IPO is expected to raise around Rs 1,400 crore at a valuation of Rs 5,600 crore. This implies a price range of Rs 58-59 per share.
The IPO will be allocated as follows:
Not more than 50% of the net offer will be reserved for qualified institutional buyers (QIBs), out of which at least 60% will be allocated to anchor investors.
Not less than 15% of the net offer will be reserved for non-institutional investors (NIIs), such as high net worth individuals (HNIs) and corporates.
Not less than 35% of the net offer will be reserved for retail individual investors (RIIs), who can apply for up to Rs 2 lakh worth of shares.
The book running lead managers for the IPO are Citigroup Global Markets India Private Limited and ICICI Securities Limited. The registrar for the IPO is Link Intime India Private Limited.
What are the Objectives of the Tata Technologies IPO?
The main objectives of the Tata Technologies IPO are:
To achieve the benefits of listing the equity shares on the stock exchanges, which will enhance the visibility and brand image of the company and provide liquidity to the existing shareholders.
To provide an opportunity for the promoters and selling shareholders to monetize their stake in the company.
The company will not receive any proceeds from the OFS and hence does not have any plans to utilize them.
What are the Financials of Tata Technologies?
Tata Technologies has been in operation since 1994 and has grown steadily over the years. The company has a global presence with offices in India, North America, Europe, Asia Pacific, and Middle East. The company serves clients across various sectors such as automotive OEMs (original equipment manufacturers), automotive suppliers, aerospace OEMs, aerospace suppliers, industrial machinery OEMs, industrial machinery suppliers, etc.
The company derives its revenue from two segments: engineering services and product lifecycle management (PLM) solutions. Engineering services include design engineering,
Tata Technologies IPO process is to finalize the price band and the lot size of the offer. The price band is the range of prices within which the investors can bid for the shares. The lot size is the minimum number of shares that an investor can apply for. These details are expected to be announced soon, as the IPO is likely to take place in August or September 202312.
The Tata Technologies IPO is an offer for sale (OFS) of up to 95,708,984 equity shares by the promoters and selling shareholders. The company will not receive any proceeds from the OFS and hence does not have any plans to utilize them. The OFS will comprise of up to 40,000,000 equity shares by Tata Motors Limited (the promoter), up to 35,000,000 equity shares by Alpha TC Holdings Pte Ltd (a selling shareholder), and up to 20,708,984 equity shares by Tata Capital Financial Services Limited (another selling shareholder)3.
The IPO will be allocated as follows:
Not more than 50% of the net offer will be reserved for qualified institutional buyers (QIBs), out of which at least 60% will be allocated to anchor investors.
Not less than 15% of the net offer will be reserved for non-institutional investors (NIIs), such as high net worth individuals (HNIs) and corporates.
Not less than 35% of the net offer will be reserved for retail individual investors (RIIs), who can apply for up to Rs 2 lakh worth of shares.
The book running lead managers for the IPO are Citigroup Global Markets India Private Limited and ICICI Securities Limited. The registrar for the IPO is Link Intime India Private Limited3.
According to some reports12, the IPO is expected to raise around Rs 1,400 crore at a valuation of Rs 5,600 crore. This implies a price range of Rs 58-59 per share. However, these are only estimates and may change depending on the market conditions and demand.
The Tata Technologies IPO is one of the most awaited IPOs of 2023, as it is the first IPO from the Tata Group since Tata Consultancy Services (TCS) in 2004. Tata Technologies is a leading global engineering services company that offers product development and digital solutions to various industries, such as automotive, aerospace, transportation, and heavy construction machinery. The company has a global presence with offices in India, North America, Europe, Asia Pacific, and Middle East. The company serves clients across various sectors such as automotive OEMs (original equipment manufacturers), automotive suppliers, aerospace OEMs, aerospace suppliers, industrial machinery OEMs, industrial machinery suppliers, etc3.
The company derives its revenue from two segments: engineering services and product lifecycle management (PLM) solutions. Engineering services include design engineering,
Conclusion
Tata Technologies IPO is a highly anticipated event in the Indian stock market, as it is the first IPO from the Tata Group in almost two decades. Tata Technologies is a leading global engineering services company that offers product development and digital solutions to various industries, such as automotive, aerospace, transportation, and heavy construction machinery.
The IPO will be an offer for sale (OFS) of up to 95,708,984 equity shares by the promoters and selling shareholders, who will collectively sell 25.29% of their stake in the company. The company will not receive any proceeds from the OFS and hence does not have any plans to utilize them. The price band and the lot size of the IPO have not been disclosed yet, but some reports suggest that the IPO may raise around Rs 1,400 crore at a valuation of Rs 5,600 crore.
The IPO will be allocated as follows: 50% for QIBs, 15% for NIIs, and 35% for RIIs. The book running lead managers for the IPO are Citigroup Global Markets India Private Limited and ICICI Securities Limited. The registrar for the IPO is Link Intime India Private Limited.
The Tata Technologies IPO may offer a good opportunity for investors who are looking for a long-term investment in a reputed and profitable company with a global presence and a diversified portfolio. However, investors should also be aware of the risks and challenges that the company faces, such as competition, regulation, technology disruption, and currency fluctuations.
We hope you enjoyed this blog post and learned something new about Tata Technologies IPO. If you have any questions or feedback, please feel free to leave a comment below. Thank you for reading! 😊
FAQs
What is Tata Technologies IPO?
Tata Technologies IPO is the initial public offering of Tata Technologies Limited, a leading global engineering services company that offers product development and digital solutions to various industries, such as automotive, aerospace, transportation, and heavy construction machinery. The IPO will be an offer for sale (OFS) of up to 95,708,984 equity shares by the promoters and selling shareholders. The IPO is expected to take place in August or September 2023 .
How to apply for Tata Technologies IPO?
To apply for Tata Technologies IPO, you will need a demat account and a trading account with a registered broker or a bank. You can also use online platforms or apps that allow you to apply for IPOs, such as Zerodha, Upstox, Groww, Paytm Money, etc. You will need to fill the application form with your details, such as your name, PAN, address, bank account number, etc. You will also need to select the number of lots and the price range that you want to bid for. You will need to pay the application amount using UPI or ASBA (Application Supported by Blocked Amount). You will receive a confirmation message once your application is submitted successfully.
What are the risks and challenges of investing in Tata Technologies IPO?
Investing in Tata Technologies IPO involves some risks and challenges, such as:
The company operates in a highly competitive and dynamic market that requires constant innovation and adaptation to changing customer needs and preferences.
The company depends on a few major clients for a significant portion of its revenue, which exposes it to the risk of losing them or facing reduced demand or pricing pressure from them.
The company faces regulatory and legal risks in different jurisdictions where it operates or provides its services, which may affect its business operations and financial performance.
The company is subject to currency fluctuations and exchange rate risks, as it derives a substantial part of its revenue from foreign markets.
The company may not be able to sustain its growth rate or profitability in the future due to various factors, such as increased competition, rising costs, technological disruption, or economic downturn.
What are the strengths and opportunities of investing in Tata Technologies IPO?
Investing in Tata Technologies IPO may offer some strengths and opportunities, such as:
The company has a strong brand reputation and recognition as a part of the Tata Group, one of the largest and most respected business conglomerates in India and the world.
The company has a diversified portfolio of services and solutions that cater to various industries and sectors across different geographies.
The company has a long-standing relationship with its clients, some of whom are leading global players in their respective domains.
The company has a highly skilled and experienced workforce that enables it to deliver high-quality and innovative solutions to its clients.
The company has a robust financial performance and growth potential, as it has consistently increased its revenue and profitability over the years.
The company may benefit from the increasing demand for engineering services and digital solutions in the post-pandemic era, as more companies seek to enhance their efficiency, productivity, and competitiveness.
Disclaimer
This blog post is for informational purposes only and does not constitute any financial advice or recommendation. The information contained in this blog post is based on the sources cited in the text and is subject to change without notice. The views and opinions expressed in this blog post are those of the author and do not necessarily reflect the official policy or position of any organization or entity.
The author of this blog post is not a registered investment advisor or broker-dealer and does not have any affiliation or relationship with Tata Technologies, Tata Motors, or any of their subsidiaries, associates, or partners. The author of this blog post does not own or trade any shares of Tata Technologies or any other company mentioned in this blog post.
The author of this blog post has made every effort to ensure the accuracy and reliability of the information provided in this blog post, but cannot guarantee its completeness, correctness, or validity. The author of this blog post is not liable for any errors, omissions, or losses that may arise from the use of or reliance on the information provided in this blog post.
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The author of this blog post hopes that you enjoyed reading this blog post and learned something new about Tata Technologies IPO. If you have any questions or feedback, please feel free to leave a comment below. Thank you for reading!
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