Tata Technologies, a subsidiary of Tata Motors, is set to raise ₹4,043 crores through its initial public offering (IPO). The Tata IPO is scheduled to open on November 22 and will close on November 24. The IPO price band for Tata Technologies is fixed at ₹475 to ₹500 per share.
For retail investors, the Tata Technologies IPO minimum market lot is 30 shares, requiring an application amount of ₹15,000. Retail investors have the option to apply for up to 13 lots, which equals 390 shares or a total application amount of ₹195,000.
About the Issue
Tata Technologies IPO plans to raise approximately ₹3,043 crores through its initial public offering (IPO), consisting of an offer for sale of up to 60,850,278 equity shares with a face value of ₹2 each. The retail quota is set at 35%, the Qualified Institutional Buyers (QIB) quota at 50%, the Shareholders Quota at 10%, and the High Net Worth Individuals (HNI) quota at 15%.
To be eligible for the Shareholders Quota, investors must have Tata Motors stock in their demat account as of the eligibility date, which is November 13, 2023.
The Tata Technologies IPO Grey Market Premium (GMP) is currently active and appears robust, suggesting strong market interest. Market speculations and the grey market trends indicate a premium listing for the Tata IPO. Investors are advised to closely monitor the daily updates on Tata Technologies IPO GMP.
Tata Technologies’ peer group companies include KPIT Technologies Limited, L&T Technology Services Limited, and Tata Elxsi Limited. Tata Motors Limited serves as the promoter of the company. Link Intime India Private Limited is the registrar, and the Lead Managers and Merchant Bankers are JM Financial Ltd, BofA Securities, and Citigroup Global Markets India Pvt Ltd.
FAQ – Tata Technologies Limited
(1) How much can an Eligible Employee Invest??
Eligible employees participating in the Employee Reservation Portion of the Tata Technologies IPO can place bids up to a maximum amount of ₹500,000. However, for allocation purposes, bids by eligible employees in this portion will initially be considered for amounts up to ₹200,000. In the event of undersubscription in the Employee Reservation Portion, the remaining unsubscribed portion will be allocated proportionately to all eligible employees who bid in excess of ₹200,000, with the maximum allotment not exceeding ₹500,000 per eligible employee.
Eligible employees in the Employee Reservation Portion are also allowed to bid in the TML Shareholders Reservation Portion and the Non-Institutional Portion or the Retail Individual Bidders (RIB) Portion. Such bids will not be treated as multiple bids. Any unsubscribed portion in the Employee Reservation Portion will be added back to the Net Offer. In case of undersubscription in the Net Offer, a spill-over will be permitted to the extent of the undersubscription from the Employee Reservation Portion.
(2) How much can an eligible TML Shareholders apply?
Eligible Tata Motors Limited (TML) shareholders participating in the TML Shareholders Reservation Portion of the Tata Technologies IPO can place bids up to a maximum amount of ₹200,000. Additionally, TML shareholders bidding in this portion are allowed to bid in the Employee Reservation Portion and the Non-Institutional Portion or the Retail Individual Bidders (RIB) Portion. These bids will not be considered as multiple bids.
Any remaining unsubscribed portion in the TML Shareholders Reservation Portion will be added back to the Net Offer. In the event of undersubscription in the Net Offer, a spill-over to the extent of the undersubscription will be permitted from the TML Shareholders Reservation Portion, subject to applicable law.