The Rs 3,042.5 crore initial share sale received bid for 66,87,31,680 shares against 4,50,29,207 shares on offer, as per NSE data
Tata Technologies, a prominent player in engineering and product development digital services, has made a remarkable debut with its Initial Public Offering (IPO). This IPO marks a significant milestone for the Tata Group, as it is the first IPO from the conglomerate in nearly two decades, following Tata Consultancy Services' IPO in 2004.
The IPO has garnered significant attention and investor interest, as reflected by its impressive subscription numbers. On the second day of the subscription period, the IPO was subscribed 14.85 times, with a total of 66,87,31,680 shares bid for against the 4,50,29,207 shares on offer.
The overwhelming response has been driven by both institutional and retail investors. The non-institutional investors' category saw a staggering subscription of 31.03 times, while retail individual investors showed strong interest with an 11.19 times subscription. Qualified institutional buyers also demonstrated their confidence in Tata Technologies, contributing to an 8.55 times subscription in their category.
The enthusiasm surrounding Tata Technologies' IPO was evident from the moment it opened for bidding. Within minutes, the IPO was fully subscribed, highlighting the high demand and positive market sentiment towards the company.
Prior to the IPO, Tata Technologies successfully raised Rs 791 crore from anchor investors, further solidifying the company's position and generating momentum for its public offering.
The public issue, with a price band of Rs 475-500 per share, will conclude on November 24.
Tata Technologies' public issue is entirely an Offer For Sale (OFS) of 6.08 crore equity shares.
Under the OFS, Tata Motors will offload 4.63 crore shares, representing 11.4 per cent stake, private equity firm Alpha TC Holdings will sell 97.17 lakh shares or 2.4 per cent stake, and Tata Capital Growth Fund I will do away with 48.58 lakh shares or 1.2 per cent of the shareholding.
JM Financial, Citigroup Global Markets and BofA Securities are the book-running lead managers to advise the company on the IPO.
Equity shares of Tata Technologies will be listed on BSE and NSE.