Tata Technologies, a member of the renowned Tata Group, has officially commenced its initial public offering (IPO), aiming to raise about ₹3,043 crore. This significant move marks the conglomerate's return to the public market after a twenty-year hiatus since Tata Consultancy Services (NS:TCS) went public. The offering is priced between ₹475 and ₹500 per share.
On Tuesday, Tata Technologies announced that it had successfully raised ₹791 crore from anchor investors by offering equity at the upper end of its price band, ₹500 per share. Esteemed entities such as Goldman Sachs (NYSE:GS) (Singapore) Pte and various mutual funds including Nippon India MF participated in this pre-IPO stake sale.
The IPO, which is entirely an offer for sale (OFS), involves over six crore equity shares being sold. Major shareholders participating in the disposal include Tata Motors (NYSE:TTM), which is offloading equity worth ₹2,314 crore, Alpha TC Holdings Pte Ltd with sales amounting to ₹486 crore, and Tata Capital Growth Fund I offering stakes valued at ₹243 crore. The IPO is managed by book-runners like BofA Securities and reflects Tata Motors' recent transaction with TPG Rise Climate worth ₹1,613 crore.
The subscription window for this landmark IPO opened today and will run until Friday. Investors are keenly watching the grey market where a surge of approximately 70% is anticipated. The minimum investment threshold for interested parties is set at one lot or 30 shares.
The IPO's structure caters to a diverse range of investors: institutional bidders are allocated half of the shares; non-institutional investors are offered 15%, while retail investors can access 35%. Additionally, there is a reserved quota for existing Tata Motors shareholders (10%) and provisions for employee participation.
Tata Technologies specializes in providing engineering services and digital solutions across several sectors, including automotive, aerospace, and heavy construction machinery. The company's expertise in these specialized fields underscores its broad industrial acumen.
The excitement around this IPO is palpable as it sets the stage for Tata Technologies' anticipated debut on stock exchanges following the conclusion of its three-day stake sale event on Friday.
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