Tata Technologies Raises Rs 791 Crore from Anchor Investors Ahead of IPO

Tata Technologies IPO Summary

Glob­al engi­neer­ing ser­vices firm Tata Tech­nolo­gies suc­cess­ful­ly raised Rs 791 crore from 67 investors through its anchor book on Novem­ber 21. This occurred a day before the Tata Group’s first ini­tial pub­lic offer­ing (IPO) in near­ly two decades, with sub­scrip­tion open­ing on Novem­ber 22 and clos­ing on Novem­ber 24.

Anchor Book Details

• Tata Tech­nolo­gies allo­cat­ed 1,58,21,071 equi­ty shares to anchor investors at the upper end of the Rs 475–500 price band.
• Notable glob­al investors par­tic­i­pat­ing in the anchor book includ­ed Gold­man Sachs, Gov­ern­ment Pen­sion Fund Glob­al, BNP Paribas Funds, and oth­ers.
• Domes­tic mutu­al funds and insur­ance com­pa­nies such as SBI Mutu­al Fund, ICICI Pru­den­tial Mutu­al Fund, and HDFC Life Insur­ance also invest­ed.

IPO Details

• Tata Tech­nolo­gies aims to mobi­lize Rs 3,042.51 crore through 6.08 crore equi­ty shares at the upper price band.
• The IPO is an offer-for-sale (OFS) by pro­mot­er Tata Motors and investors Alpha TC Hold­ings & Tata Cap­i­tal Growth Fund I.
• Pro­ceeds, exclud­ing IPO expens­es, will go to the sell­ing share­hold­ers.
• The IPO includes reser­va­tions for employ­ees (20.28 lakh equi­ty shares) and Tata Motors share­hold­ers (60.85 lakh equi­ty shares).
• Half of the net offer size is reserved for qual­i­fied insti­tu­tion­al buy­ers, 15 per­cent for high net worth indi­vid­u­als, and the remain­ing 35 per­cent for retail investors.

Grey Market Outlook

• Tata Tech­nolo­gies IPO shares were report­ed­ly avail­able at a sub­stan­tial 70 per­cent pre­mi­um in the grey mar­ket over the upper price band.
• Ana­lysts sug­gest that investors often con­sid­er the grey mar­ket pre­mi­um as an indi­ca­tor of the expect­ed list­ing price.

Tata Tech­nolo­gies IPO Details