Tata Motors Ltd., the parent company of Tata Technologies set for a listing on Dalal Street, successfully raised ₹2,313 crore through the sale of shares in its initial public offering (IPO). The company aimed to sell 4.62 crore shares of Tata Technologies, constituting a pure Offer for Sale (OFS), with each share priced at ₹500. The three-day IPO witnessed a remarkable subscription of nearly 70 times.
Following the share sale, Tata Motors’ ownership in Tata Technologies decreased from 64.79% to 53.39%. Preceding the IPO, the parent company had already divested a 9.9% stake in Tata Technologies to TPG at an equity valuation of ₹16,300 crore (Check the embed article). This IPO marked the first offering from the Tata Group in two decades, drawing bids totaling ₹1.56 lakh crore for an offer size just above ₹3,000 crore.
The portion designated for Qualified Institutional Bidders (QIB) saw an overwhelming subscription of 203.41 times, while Non-Institutional Investors subscribed 62.11 times. Retail investors displayed a keen interest, with Tata Technologies’ portion for them experiencing 16.5 times subscription. Shareholders of Tata Motors also exhibited significant interest, subscribing over 29.19 times.
Tata Technologies is scheduled to be listed on the stock exchanges on Thursday, November 30. Axis Capital estimates the post-issue market capitalization to range between ₹19,269 crore and ₹20,283 crore. In the unlisted market, shares of Tata Technologies are witnessing high demand, reflected in a grey market premium (GMP) in between 385-395, although it’s essential to note that GMPs are dynamic and indicative of the unlisted market sentiment.
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