Tata Technologies Limited’s initial public offering (IPO) witnessed an overwhelming response from investors, with bids reaching a staggering Rs 1.56 lakh crore on the final day of subscription. The issue was subscribed 69.4 times, indicating strong demand for shares in the IT services company.
- Qualified Institutional Buyers (QIBs): Subscribed 203.41 times, bidding for shares worth Rs 1,07,269.70 crore.
- Non-Institutional Investors (NIIs): Subscribed 62.11 times, with bids totaling Rs 24,566.19 crore.
- Retail Individual Investors (RIIs): Subscribed 16.50 times, with total bids worth Rs 15,230.83 crore.
- Employee segment: Subscribed 3.70 times.
- Other categories: Subscribed 29.20 times.
IPO Subscription Details
Day-wise Subscription:
- Day 1 (November 22, 2023):
- QIB: 4.08 times
- NII: 11.93 times
- Retail: 6.05 times
- EMP: 1.27 times
- Other: 5.61 times
- Total: 6.34 times
- Day 2 (November 23, 2023):
- QIB: 8.55 times
- NII: 31.19 times
- Retail: 11.56 times
- EMP: 2.47 times
- Other: 20.48 times
- Total: 15.10 times
- Day 3 (November 24, 2023):
- QIB: 203.41 times
- NII: 62.11 times
- Retail: 16.50 times
- EMP: 3.70 times
- Other: 29.20 times
- Total: 69.43 times
Category-wise Subscription:
- Qualified Institutions: 203.41 times
- Non-Institutional Buyers: 62.11 times
- Retail Investors: 16.50 times
- Employees: 3.70 times
- Others: 29.20 times
- Total: 69.43 times
IPO Size and Price Band:
- Offered Shares: 45,029,207
- Shares Bid for: 3,12,64,92,240
- Total Amount (₹ Cr.): 1,56,324.61
- Price Range: ₹475 to ₹500 per share
Impact on Company Post-IPO
- Market Positioning: After listing, Tata Technologies will rival other midcap tech companies like Tata Elxsi, KPIT Technologies, Cyient, and L&T Technology Services.
- Market Cap Comparison: Based on the upper price band, Tata Tech’s market cap is around ₹20,283 crore, compared to higher market caps of its peers.
- Financial Metrics:
- Return-on-Equity (ROE): 23.7% for Tata Tech by the end of FY23.
- CAGR in Revenue (FY20-FY23): 15.7% for Tata Tech.
- CAGR of PAT: 35.4% for Tata Tech.
- Price-to-Equity Ratio: Lowest among peers at 28.8x.
- Listing Scenarios: Based on different revenue CAGR assumptions for FY23-FY26, Tata Tech’s valuation varies. Scenarios range from an attractive valuation with 18% revenue CAGR to a more conservative 10% CAGR.
- Business Focus: Tata Tech is a global engineering services company focusing on sectors like Automotive, Aerospace, and Transportation.
The IPO was a significant event for Tata Technologies, marking the first Tata Group-backed company to go public in 19 years. The overwhelming response from investors indicates strong market confidence in the company’s future prospects.