Tata Technologies IPO subscribed 6.54 times on day 1

Tata Technologies, a leading provider of engineering and product development digital services, witnessed a remarkable response to its Initial Public Offering (IPO), with full subscription occurring within minutes of opening for bidding. The IPO concluded with an overall subscription of 6.54 times, marking a significant investor interest in the offering.

This milestone IPO marks the first public offering from the Tata Group in nearly two decades, with Tata Consultancy Services being the last to go public in 2004.

According to NSE data, the IPO, valued at Rs 3,042.5 crore, received bids for 29,43,78,780 shares against the 4,50,29,207 shares on offer, resulting in a subscription rate of 6.54 times. Non-institutional investors showed robust interest with a subscription rate of 11.69 times, while Retail Individual Investors (RIIs) subscribed 5.42 times. The quota for Qualified Institutional Buyers (QIBs) received a subscription rate of 4.08 times.

Tata Technologies, an arm of Tata Motors, successfully raised Rs 791 crore from anchor investors a day before the IPO commenced.

The public issue, featuring a price band of Rs 475-500 per share, is set to conclude on November 24. The offering consists entirely of an Offer for Sale (OFS) of 6.08 crore equity shares. Under the OFS, Tata Motors plans to divest 4.63 crore shares (11.4 per cent stake), Alpha TC Holdings will sell 97.17 lakh shares (2.4 per cent stake), and Tata Capital Growth Fund I will part with 48.58 lakh shares (1.2 per cent stake).

Leading financial institutions, including JM Financial, Citigroup Global Markets, and BofA Securities, are acting as the book-running lead managers for the IPO.

The equity shares of Tata Technologies are set to be listed on both BSE and NSE.