Tata Tech IPO: GMP, issue details, all we know so far for this much awaited IPO

Also Read: TVS Supply Chain IPO allotment expected today, what does GMP signal?

Tata Technologies IPO details

The objectives of the offer, according to Tata Tech IPO Draft red herring prospectus (DRHP), are to carry out Offer for Sale (OFS) of up to 95,708,984 equity shares by the selling shareholders and reap the benefits of listing the equity shares on public exchanges. The shares are proposed to be listed on BSE, NSE.

“Further, our Company expects that the proposed listing of its Equity Shares will enhance our visibility and brand image as well as provide a public market for the Equity Shares in India,” said the Tata Group company in its DRHP.

JM Financial Ltd, Citigroup Global Markets India Private Ltd, and BofA Securities India Ltd are the issues book running lead managers (BRLM), and Link Intime India Private Ltd is the registrar to the offer.

The company in its DRHP stated that the price band and offer price will be determined by them, in consultation with the BRLM, on the basis of assessment of market demand for the equity shares offered through the Book Building Process and on the basis of quantitative and qualitative factors as described below. The face value of the equity shares is ₹2 each, according to the DRHP.

Tata Tech IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

Tata Technologies’ IPO, which is entirely an Offer for Sale (OFS) offering, has already begun receiving signals from the grey market since SEBI gave its approval for its launch.

Tata Technologies IPO GMP

Tata Technologies IPO GMP today or grey market premium is ₹100, according to ipowatch.in. Last week, according to market observers, Tata Technologies IPO grey market premium was ₹105. Market observers said that Tata Technologies IPO GMP has risen despite weak stock market sentiments in the week gone. Tata Technologies IPO GMP was ₹89 in the first week of August.

Also Read: Pyramid Technoplast IPO: Pyramid IPO fully booked on day 1; here’s what GMP indicates

Tata Technologies IPO price

Asked about Tata Technologies IPO expected price, market expert Anuj Gupta said, “Comparing Tata Technologies with its peer Cyient, market cap of Tata Technologies would come around ₹12,000 crore. As the company has proposed 405,668,530 shares to list on Indian bourses, Tata Technologies IPO price would come around ₹295. So, in case of neck to neck valuations, Tata Technologies IPO price can be expected around ₹295. Sometime, a company offer their stocks at 10-15 discount to make it more attractive for the investor. In that case, Tata Technologies IPO price may come around ₹265 to ₹270 per equity share. However, in case of high response expectations, companies also try to maximise its return and hence they offer their stock at higher valuations by same percentage points. In that case, Tata Technologies IPO price can be expected around ₹315 to ₹320 per equity share.”

Also Read: Tata Technologies IPO: GMP jumps. Key risks involved in this upcoming IPO

Tata Technologies IPO: Why you should apply?

Speaking on Tata Technologies IPO details, Aamar Deo Singh, Head Advisory at Angel One said, “Tata Technologies is an IT company with Tata Motors having stakes in it, it being a subsidiary of Tata Motors. The primary line of business of Tata Technologies is to provide outsourced engineering service and digital transformation services to global clients. Tata Technologies helps companies to conceive, design, develop, and deliver better products. Tata Technologies is a global company with deep-domain knowledge and expertise in the automotive industry, deploying to adjacent industries like aerospace, transportation and construction of heavy machinery.”

Also Read: Tata Technologies IPO: GMP, expected date and price. Why you should apply — explained

Updated: 19 Aug 2023, 10:33 AM IST