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Published: November 24, 2023
Updated: November 24, 2023

Breaking Records: Tata Technologies IPO Oversubscribed in Minutes

In a remarkable turn of events, Tata Technologies' much-anticipated initial public offering (IPO) witnessed unprecedented success, being fully subscribed within minutes of its opening on Wednesday. This marks a significant milestone as the first IPO from the Tata Group in nearly two decades, with Tata Consultancy Services being the last group company to go public in 2004.

Unprecedented Investor Enthusiasm:

Investors demonstrated exceptional enthusiasm, oversubscribing the IPO by a staggering 2.89 times. The demand soared as investors bid for more than 130.3 million shares, surpassing the 45 million shares available for subscription, according to data from the stock exchange.

Indian IPO Surge in 2023:

The success of Tata Technologies' IPO aligns with a broader trend in 2023, where Indian IPOs have set new benchmarks both domestically and internationally. A total of 194 companies have launched share offerings this year, coinciding with the Indian equity market reaching unprecedented highs. Factors such as promising economic growth and a substantial consumer market have positioned India as an appealing destination for companies seeking to go public and for investors.

Grey Market Buzz and Anticipated Gains:

The grey market is buzzing with indications of a potential listing gain of approximately 70%. This optimism has led many brokerages to advise investors to subscribe to the issue, anticipating benefits from both initial listing gains and long-term investment returns.

Diverse Investor Participation:

The non-institutional investor segment demonstrated robust interest with a subscription rate of 2.72 times, while the Qualified Institutional Buyers (QIBs) quota was subscribed 1.98 times. Retail individual investors (RIIs) participated eagerly, with their portion being subscribed 1.63 times.

Key Details of the Offering:

Tata Technologies, a subsidiary of Tata Motors, announced raising Rs 791 crore from anchor investors ahead of the IPO. Priced between Rs 475-500 per share, the IPO is set to close on November 24. This public offering is entirely an offer-for-sale (OFS) of 6.08 crore equity shares. Tata Motors, Alpha TC Holdings, and Tata Capital Growth Fund I are among the key entities participating in the OFS.

Leading the Charge:

JM Financial, Citigroup Global Markets, and BofA Securities are the book-running lead managers for the IPO. The equity shares of Tata Technologies are expected to be listed on both the BSE and NSE, marking a significant moment for the company and investors alike.

A Triumph in IPO History:

Tata Technologies' IPO oversubscription within minutes showcases not only the company's appeal but also the robust investor confidence in the current Indian market landscape. As the offering progresses, all eyes are on the potential listing gains and the lasting impact on the market, positioning Tata Technologies as a trailblazer in the IPO arena.