Tata Technologies

History

2023: Going public

At the end of November 2023, the Indian engineering company Tata Technologies went public. She released the results of the collection of applications from investors as part of the initial public offering (IPO). Demand exceeded supply by almost 70 times, which indicates the significant potential of this enterprise.

It is reported that investors have expressed a desire to acquire 3.13 billion Tata Technologies securities with a total value of 1.56 trillion rupees ($18.74 billion as of November 30, 2023). At the same time, the company itself intends to sell about 45 million shares within the framework of the IPO. Thus, the total volume of applications exceeded the offer by 69.43 times. Institutional investors have shown the most interest.

Tata Technologies goes public

Tata Technologies began trading on November 30, 2023. The IPO is valued at Rs 30.43 billion ($366 million) if counted at the upper end of the announced price range of Rs 475-500. Thus, the market value of the company is about 202.83 billion rupees (approximately $2.43 billion).

Market participants say the strong investor interest in Tata Technologies' IPO is because it is the first Tata group structure to go public since Tata Consultancy Services (TCS) in 2004. About 50% of the offer is reserved for qualified institutional investors, 35% for retail investors and 15% for non-institutional investors. As part of the IPO, Tata Technologies also reserved a 10 percent quota for eligible Tata Motors shareholders.

As part of the IPO, we recommend that investors sign up to Tata Technologies based on the company's growth potential. We believe that Tata Technologies can provide good profit in the long term, "says analyst Prashanth Tapse from Mehta Equities.[1]

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