The price range for Tata Technologies’ eagerly expected initial public offering (IPO) is set at Rs 475–500 per equity share. The public can subscribe to this issue starting on November 22 and it will end on November 24.
Tata Technologies is a top global provider of engineering services, providing original equipment manufacturers (OEMs) with digital solutions and product development. Concept design, vehicle architecture, body and chassis engineering, electrical and electronics systems, and diagnostics are among the services provided by the company. More than 11,000 workers are distributed among 18 international delivery centres.
The book-building IPO is a full offer for sale (OFS), with promoter Tata Motors and other selling shareholders taking home all profits from the sale. Parent company Tata Motors will sell 4.62 crore shares under the OFS, Tata Capital Growth Fund would forfeit 48 lakh shares, and Alpha TC Holdings will dispose of 97.1 lakh shares.
6.08 crore equity shares are currently being issued, down from 9.57 crore shares previously. The business submitted its initial public offering (IPO) documents to Sebi in March of this year, and the regulator gave its clearance in June. Bids may be placed for a minimum of thirty equity shares, and if more are desired, in multiples of thirty equity shares. An estimated Rs 2,890 crore to Rs 3,042 crore is the issue size.
Tata Technologies has set aside 10% of the offer for qualifying shareholders of Tata Motors.
According to the Draft Red Herring Prospectus (DRHP) that the business filed with Sebi, the weighted average cost of acquisition for Tata Motors is Rs 7.40/share; for investors Alpha TC Holdings and Tata Capital Growth Fund I, it is Rs 25.10.
When TPG Climate acquired around 9% of Tata Tech, the firm was last valued at about $2 billion (Rs 16,300 crore).
With revenue of Rs 3,052 crore for the nine months that concluded in December 2022, the company had a 15% YoY gain in revenue. Eighteen percent of the overall revenue came from the service category. During that same time frame, the company’s net profit was Rs 407 crore. Its revenue increased at a 30% compound annual growth rate (CAGR) throughout the course of FY 2022–2023, resulting in a 46% CAGR in EBITDA. PAT grew at a CAGR of 61.5% throughout that same time period.
The IPO’s book-running lead managers are JM Financial, Citigroup Global Markets India, and BofA Securities India. Link Intime India Private Limited is the registrar.
Bids may be placed for a minimum of thirty equity shares, and if more are desired, in multiples of thirty equity shares. For individual investors, the minimum bid amount is Rs 15,000, and for non-institutional investors (NIIs), it is Rs 210,000. It is Rs 1,005,000 for eligible institutional purchasers.
The post-issue market cap is estimated by Axis Capital to be between Rs 19,269 crore and Rs 20, 283 crore.
There are 2,028,342 equity shares allocated to the employee quota.
1) Finalisation of basis of allotment: Around November 30
2) Refunds and fund unblocking begin on December 12.
3) Credit of shares into demat accounts: December 4
4) Listing Date: December 5th