Tata Technologies IPO: After a gap of almost two decades, the Tata Group is today presenting its initial offering. The initial public offering of Tata Technologies Limited hit the Indian primary market today and the book issue will remain open for bidding till November 24, 2023. The Tata group company has set the price range of the IPO of Tata Technologies in ₹475 to ₹500 per share. The public issue is worth ₹3,042.51 crores are offered for listing on BSE and NSE. The public broadcast is 100 percent.
Meanwhile, the gray walk signals a bullish trend regarding the Tata Technologies IPO. According to Investorgain.com, shares of Flair Writing Industries Limited are available at a premium of ₹355 on the gray market today.
Important Details of Tata Technologies IPO
1) Tata Technologies GMP IPO: Shares of the stationary brand are available at a premium of ₹355 on the gray market today, according to Investorgain.com
2) Tata Technologies IPO Date: The public offering opened today and will remain open for bidding until November 24, 2023, which is until Friday this week.
3) Tata Technologies IPO Price: The company has a fixed issue price of ₹475 to ₹500 per share.
4) Size of Tata Technologies IPO: The stationery brand aims to increase ₹3,042.51 crore from its initial offering. The public issue is 100 percent OFS (offer for sale) in nature.
5) Tata Technologies IPO Batch Size: A bidder will be able to apply in batches and one batch of the public issue comprises 30 shares of the company.
6) Investment limit during Tata Technologies IPO: Since one lot of Tata Technologies IPO comprises 30 shares of the company and the price band of Tata Technologies IPO has been fixed at ₹475 to ₹500 per share, a retail investor will need a minimum of ₹15,000 ( ₹500 x 30) to apply for the Tata Technologies IPO.
7) Tata Technologies IPO Grant Date: Continuing the T+3 schedule, the initial public offering is expected to finalize the allocation of shares either on November 27, 2023, or no later than November 28, 2023.
8) Listing on the stock exchange of Tata Technologies: The public issue is worth ₹3,042.51 crores are offered for listing on BSE and NSE.
9) Tata Technologies IPO Date: In line with the T+3 schedule, the public issue is expected to be listed in the third trading session after the close of the public issue. With the closing date set for Friday November 24, 2023, the public issue is expected to be listed on Wednesday next week or November 29, 2023.
Tata Technologies IPO: Apply or not?
10) Tata Technologies IPO Review: Arun Kejriwal, Founder, Kejriwal Research and Investment Services, said, “Tata Technologies Limited is a major player in the electric vehicle segment and has helped many companies across the world launch electric vehicles and reconfigure ICE into electric vehicles. and also contribute to the role of electric vehicles as the way forward. The company reported revenues of ₹4,414 crores for the financial year ended March 23 and ₹2,526 crore for the six months ended September 23. He has a PAT margin of 14.14%. The March 23 EPS was ₹15.37. The PE multiple at the price range is 30.90 to 32.53. The issue presents an attractive price and offers margin of appreciation in the short and medium term. The scale of the problem is relatively small, roughly ₹3,000 billion. The hype around this issue will leave many investors unhappy with the non-attribution. In any case, you have to invest.”
Advise investors to apply Tata Technologies IPORajesh Sinha, Senior Research Analyst at Bonanza Portfolio, said, “At the upper price band, the post-issue market capitalization will be Rs. 20,283.43 Crs. At the upper price band, Tata Technologies is valued at 28.3x TTM EPS of Rs. 17.7/- which makes the IPO highly undervalued compared to its peers like Tata Elxi (which traded at 65.9x TTM EPS), KPIT Technologies (86.2x TTM EPS), L&T Technology Services (37.0x TTM EPS). We advise investors to subscribe to the IPO from a medium to long term perspective.
Giving the long term ‘subscribe’ tag, Prashanth Tapse, Senior Vice President — Research at Mehta Equities, said, “On analyzing the valuation at the upper price band of ₹500 and based on annualized profits and fully diluted post-IPO paid-up capital, the issue asks for a market capitalization of ₹ 20,283 Cr with a P/E of 29x on a consolidated basis, which appears to be reasonably priced for the issue compared to its industry peers which trade ~60x. Despite the 100% OFS offer, investors wish to hold the title based on the group’s heritage. Considering all parameters, we strongly advocate good long-term prospects for the company. Therefore, we recommend investors to “SUBSCRIBE” to the TATA TECH IPO offering with a long-term outlook along with strong listing gain through investor-friendly pricing and good margin of increase.
Reliance Securities, Arihant Capital, Ventura and Investmentz have also given a ‘subscribe’ tag to the Tata Technologies IPO.
Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to seek advice from certified experts before making any investment decisions.
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