Tata Tech IPO subscribed 22.25x on Day 3 so far; issue closes today

The initial public offering (IPO) of Tata Technologies continued to see a strong buying intested from all categories of investors during the third and final day of the bidding process. The Tata Group's primary offering was overall subscribed 6.54 times on day 1 and ended day 2 with 14.85 times subscription. Tata Technologies is raising a total of Rs 3,042.51 crore via its initial stake sale in the fixed price band of Rs 475-500 per share in the lot size of 30 equity shares and its multiples. The issue is entirely an offer-for-sale (OFS) of up to 6,08,50,278 equity shares by promoter and other selling shareholders of the company According to the data, the investors made bids for 1,00,24,53,450 equity shares, or 22.25 times, compared to the 4,50,29,207 equity shares offered for the subscription by 12.35 pm on Friday, November 25. The three-day bidding, which kicked off on Wednesday, November 22, will conclude for bidding today, that is,Friday, November 24. The portion reserved for non-institutional investors (NIIs) was subscribed 46.19 times, while the allocation for shareholders of Tata Motors was booked 24.88 times. The portion for qualified institutional bidders (QIBs) saw a subscription of 21.42 times. The quota set aside for retail investors saw a bidding of 13.83 times, while the employees portion was booked thrice at the same time. Majority of the brokerage firms tracking the issue are positive on it and have suggested to subscribe to the issue. They see strong management and promoter background, robust balance sheet, attractive valuations and solid growth potentials in emerging sectors as the key positives for the issue. Backed by a well-recognized brand and guided by experienced promoters, Tata Tech has demonstrated robust financial growth, said GEPL Capital. "With a solid foundation and a forward-looking approach, Tata Tech is well-positioned to capitalize on emerging opportunities in the automotive sector and beyond. Hence, we recommend 'subscribe' rating to the stock issue," he said. Tata Technologies raised Rs 791 crore from 67 investors through the anchor book as it allocated 1,58,21,071 equity shares at a price of Rs 500 per share. JM Financial, Citigroup Global Markets India and BofA Securities India are the book running lead managers of the IPO, while Link Intime India is the registrar for the issue. Tata Tech is a leading global engineering services company with deep expertise in the automation industry. It posted consistent growth in revenue and margins in the last few years. Tata is known as an investor friendly group and enjoys special preference amongst investors. Company has differentiated capabilities in new age automation trend EV’s, said Master Trust Services with a 'subscribe' rating.  

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