Tata Technologies IPO - Everything You Must Know

Key Things to Know About Tata Technologies IPO

Here are important things you should know about Tata Technologies IPO. Let’s dive into the details-

• Tata Technologies IPO Date

The Tata Technologies IPO will open for subscription on 22nd November, 2023. It is set to close on 24th November, 2023.

• Listing Date

Tata Technologies’ shares trading will start on 5 December 2023, according to the IPO schedule.

• Offer Details

The company is aiming to raise an approximate amount of Rs 3,042.51 crores through the IPO at the upper price band.

As per the company’s plan, the issue will consist of an offer-for-sale by the investors and promoters.

• Promoter Tata Motors will offload 4.62 crore equity shares, which is worth Rs 2,314 crore in the offer-for-sale.
• Investors Alpha TC Holdings Pte Ltd will be selling 97.17 lakh shares worth Rs 486 crore. Tata Capital Growth Fund I will sell 49 lakh shares, which is worth Rs 243 crore.
• Tata Tech has reserved 20.28 lakh shares for its employees and 60.85 lakh shares for the shareholders of Tata Motors.

• Tata Technologies Share Price Band

Tata Technologies has fixed the price band for the issue at Rs 475-500 per share. Note, at the upper price band, the company’s valuation stands at Rs 20,283 crore.

• Lot Size

For the Tata Tech IPO, the investors can bid for a minimum of 30 equity shares and multiples of 300 post that.

Therefore, the minimum investment by retail investors would be Rs 14,250[(30 (Lot size) x 475 (lower price band)]. Note at the upper end, the bidding amount will increase to Rs 15,000.

• Company Financials

As per the company’s statements, Tata Technologies reported 42.8% on-year growth in consolidated net profit at Rs 624 crores for the year ended March 2023. Its revenue increased by 25.81%.

Here is a brief break-up of the Financials of Tata Technologies (in Rs crores)-

How to Apply for Tata Tech IPO on Groww

Here’s how to apply for Tata Technologies IPO online on Groww-

Step 1:  Visit  Groww's IPO Page, or if you are a Groww app user, then go to the stocks tab, scroll down to view the list of live IPOs and select Tata Technologies IPO.

Step 2: After clicking on Tata Technologies IPO, you will be able to see all the important details, such as issue size, price, etc. Here, you can also read the Red Herring Prospectus (RHP) for detailed information about the issue. Next, click on ‘Apply’ to proceed.

Step 3:  In the order card, you will see the pre-filled field for the minimum number of shares. Enter the number of shares you want to buy. Click on ‘Continue’ to proceed.

Step 4: Next, you will be required to verify bids and click on ‘Submit Bid‘.

Step 5: Upon confirming the order, the highest bid amount will be blocked in your account and cannot be used for withdrawal. Note this amount will get unblocked if you do not receive the allotment.

You can check the status of your Tata Technologies IPO application on your Groww account. Note that any modifications/order cancellations will be possible only till the time the IPO is open.

The Bottom Line

As per some industry experts, the Tata Technologies IPO looks promising. However, you should apply for this IPO only if it meets your financial goals by considering the company's objectives, financials, and associated benefits and risks.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Aakash Baid