Tata Technologies IPO: Issue size, price, and other details 

Tata Technologies IPO: Tata Technologies is set to launch its initial public offering (IPO), which falls under the book-built issue category. The IPO will consist of a total issue size of 9.57 crore shares. Once listed, Tata Technologies shares will be available for trading on the BSE and NSE stock exchanges. 

IPO details 

The face value of each share is Rs 2. While the price range has not yet been disclosed, the IPO has been classified as a book-built issue, indicating that the price range will be determined based on investor demand. The specific IPO date, listing date, and lot size are not provided in the given information. The offering will include an offer for sale of the same 9.57 crore shares, with the goal of aggregating a certain amount of capital. 

IPO reservations 

Qualified institutional buyers (QIBs) have the opportunity to be allocated up to 50 per cent of the net issue, reflecting a substantial portion of the offering. Non-institutional investors (NIIs), which include high-net-worth individuals (HNIs), are offered not less than 15 per cent of the net issue. This allocation aims to accommodate the interest and participation of HNIs in the IPO. Retail investors, a significant segment of the market, are guaranteed a minimum allocation of 35 per cent of the net issue, contributing to widespread participation and inclusion. This thoughtful distribution among QIBs, NIIs, and retail investors is intended to foster a diverse investor base and ensure equitable access to the Tata Technologies IPO.

Should you subscribe?

Tata Technologies specialises in providing outsourced engineering and digital transformation services to manufacturing clients globally, specifically focusing on ER&D services, said Omkar Kamtekar, Research Analyst at Bonanza Portfolio. He added that the company has established itself as a key player in the automotive ER&D services sector, leveraging its vast knowledge and expertise in the industry. Tata Tech offers complete solutions for the entire process of developing, manufacturing, and providing after-sales services for electric vehicles. Despite economic uncertainty, there is a significant increase in global investments in ER&D services projected over the next few years.

"India is quickly becoming a preferred choice for outsourcing ER&D services due to the abundance of talented individuals, an ecosystem that supports innovation, cost effectiveness, in-house R&D centres, and geopolitical support. It is estimated that the Indian engineering service providers (ESP) market will experience a growth rate of 13–16 per cent CAGR," said Kamtekar.

"Tata Technologies would be at the centre stage and an ideal pick to play this ER&D and EV story; therefore, we assign a subscribe rating with a long-term view. However, it's important to note that the company's primary source of income comes from the automotive industry, which is subject to cyclical fluctuations that can affect its financial performance," he said.

Kamtekar said that there is a certain level of customer concentration in the business that should be taken into consideration before subscribing to the IPO.