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.
- 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.