Tata Technologies IPO LIVE Updates Day 3: Issue subscribed over 34 times so far; retail portion booked 14.66x

Tata Technologies IPO subscription status is 34.75 times at 13:45 IST.

Tata Tech IPO’s retail investors portion has been subscribed 14.66 times, NII portion is subscribed 52.77 times, and Qualified Institutional Buyers (QIB) portion is booked 67.33 times. Employee portion has been subscribed 3.20 times Portion reserved for the shareholder has been booked 26.34 times.

Tata Technologies IPO has received bids for 1,56,49,07,250 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 30.53 times at 13:30 IST.

Tata Tech IPO’s retail investors portion has been subscribed 14.46 times, NII portion is subscribed 51.14 times, and Qualified Institutional Buyers (QIB) portion is booked 51.15 times. Employee portion has been subscribed 3.13 times Portion reserved for the shareholder has been booked 25.87 times.

Tata Technologies IPO has received bids for 1,37,47,21,950 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 27.76 times at 13:15 IST.

Tata Tech IPO’s retail investors portion has been subscribed 14.29 times, NII portion is subscribed 49.24 times, and Qualified Institutional Buyers (QIB) portion is booked 41.14 times. Employee portion has been subscribed 3.09 times Portion reserved for the shareholder has been booked 25.70 times.

Tata Technologies IPO has received bids for 1,24,99,66,050 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 26.04 times at 13:00 IST.

Tata Tech IPO’s retail investors portion has been subscribed 14.14 times, NII portion is subscribed 48.45 times, and Qualified Institutional Buyers (QIB) portion is booked 34.82 times. Employee portion has been subscribed 3.05 times Portion reserved for the shareholder has been booked 25.45 times.

Tata Technologies IPO has received bids for 1,17,25,07,820 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 23.51 times at 12:45 IST.

Tata Tech IPO’s retail investors portion has been subscribed 14.01 times, NII portion is subscribed 47.92 times, and Qualified Institutional Buyers (QIB) portion is booked 24.75 times. Employee portion has been subscribed 3.02 times Portion reserved for the shareholder has been booked 25.29 times.

Tata Technologies IPO has received bids for 1,05,86,93,040 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 22.32 times at 12:30 IST.

Tata Tech IPO’s retail investors portion has been subscribed 13.83 times, NII portion is subscribed 46.30 times, and Qualified Institutional Buyers (QIB) portion is booked 21.42 times. Employee portion has been subscribed 2.98 times Portion reserved for the shareholder has been booked 24.93 times.

Tata Technologies IPO has received bids for 1,00,51,46,640 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 21.90 times at 12:15 IST.

Tata Tech IPO’s retail investors portion has been subscribed 13.63 times, NII portion is subscribed 45.42 times, and Qualified Institutional Buyers (QIB) portion is booked 20.83 times. Employee portion has been subscribed 2.92 times Portion reserved for the shareholder has been booked 24.57 times.

Tata Technologies IPO has received bids for 98,59,32,390 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 20.52 times at 12:03 IST.

Tata Tech IPO’s retail investors portion has been subscribed 13.49 times, NII portion is subscribed 43.61 times, and Qualified Institutional Buyers (QIB) portion is booked 16.67 times. Employee portion has been subscribed 2.89 times Portion reserved for the shareholder has been booked 24.39 times.

Tata Technologies IPO has received bids for 92,39,90,220 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 20.11 times at 11:45 IST.

Tata Tech IPO’s retail investors portion has been subscribed 13.34 times, NII portion is subscribed 43.07 times, and Qualified Institutional Buyers (QIB) portion is booked 15.72 times. Employee portion has been subscribed 2.84 times Portion reserved for the shareholder has been booked 24.15 times.

Tata Technologies IPO has received bids for 90,53,98,830 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 19.29 times at 11:30 IST.

Tata Tech IPO’s retail investors portion has been subscribed 13.16 times, NII portion is subscribed 41.31 times, and Qualified Institutional Buyers (QIB) portion is booked 14.07 times. Employee portion has been subscribed 2.80 times Portion reserved for the shareholder has been booked 23.78 times.

Tata Technologies IPO has received bids for 86,86,18,650 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 18.96 times at 11:15 IST.

Tata Tech IPO’s retail investors portion has been subscribed 12.96 times, NII portion is subscribed 40.50 times, and Qualified Institutional Buyers (QIB) portion is booked 13.83 times. Employee portion has been subscribed 2.74 times Portion reserved for the shareholder has been booked 23.42 times.

Tata Technologies IPO has received bids for 85,35,34,950 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 18.65 times at 11:00 IST.

Tata Tech IPO’s retail investors portion has been subscribed 12.79 times, NII portion is subscribed 39.62 times, and Qualified Institutional Buyers (QIB) portion is booked 13.67 times. Employee portion has been subscribed 2.70 times Portion reserved for the shareholder has been booked 23:11 times.

Tata Technologies IPO has received bids for 83,97,36,660 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 18.52 times at 10:48 IST.

Tata Tech IPO’s retail investors portion has been subscribed 12.71 times, NII portion is subscribed 39.21 times, and Qualified Institutional Buyers (QIB) portion is booked 13.66 times. Employee portion has been subscribed 2.68 times Portion reserved for the shareholder has been booked 22.98 times.

Tata Technologies IPO has received bids for 83,40,54,000 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 16.52 times at 10:27 IST.

Tata Tech IPO’s retail investors portion has been subscribed 12.38 times, NII portion is subscribed 36.03 times, and Qualified Institutional Buyers (QIB) portion is booked 8.62 times. Employee portion has been subscribed 2.61 times Portion reserved for the shareholder has been booked 22.01 times.

Tata Technologies IPO has received bids for 74,36,66,460 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 15.82 times at 10:09 IST.

Tata Tech IPO’s retail investors portion has been subscribed 12.01 times, NII portion is subscribed 33.50 times, and Qualified Institutional Buyers (QIB) portion is booked 8.61 times. Employee portion has been subscribed 2.55 times Portion reserved for the shareholder has been booked 21.32 times.

Tata Technologies IPO has received bids for 71,23,62,180 shares against 4,50,29,207 shares on offer, according to data from the BSE.

• The company’s revenues are highly dependent on clients concentrated in the automotive segment. An economic slowdown or factors affecting this segment may have an adverse effect on its business, financial condition and results of operations, as per the RHP.

• There is intense competition in the market for engineering services that could affect its pricing and have a material adverse effect on its financial condition. Certain of its group companies operate in a similar line of business, which may lead to competition with these entities and could potentially result in a loss of business opportunity for it.

• Tata Technologies said there were outstanding legal proceedings involving the company, its directors, subsidiaries and its promoter.-

Tata Technologies listed industry peers are KPIT Technologies Ltd (with P/E of 80.31), L&T Technology Services Ltd (with P/E of 37.47), and Tata Elxsi Ltd (with P/E of 61.55), as per RHP.

According to the brokerage’s report, Tata Tech has proposed an OFS worth ₹3,043 crore. Tata Motors will sell 46,275,000 shares, bringing its pre-issue stake down to 64.8% and its post-issue stake down to 53.4%. Other shareholders that are selling include Tata Capital Growth Fund I (selling 4,858,425 shares) and Alpha TC Holdings Pte Ltd (selling 9,716,853 shares). These shareholders will reduce their holdings from 3.6% to 2.4% and 7.3% to 4.9%, respectively.

“With the gradual recovery in the global economy, rising manufacturing capex and shift in manufacturing from US/Europe/China to India due to cost inflation and China+1 strategy, we are expecting strong in the Tata Tech’s financial performance in the coming years. At the IPO price of ₹500 (upper price band), Tata Tech is valued at a TTM P/E of 28.3X. Considering the growth opportunities and strong fundamentals of Tata Tech, we recommend a SUBSCRIBE rating for this IPO,” the brokerage said. 

Tata Technologies IPO GMP today, or grey market premium, is +403. This indicates Tata Technologies share price now is trading at a premium of ₹403 in the grey market on Friday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Tata Tech share price is indicated at ₹903 apiece, which is 80.6% higher than the IPO price of ₹500.

Based on last 39 sessions grey market activities, today IPO GMP points upward and expects a strong listing. The lowest GMP is ₹240, while the highest GMP is ₹403, according to analysts of investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Tata Technologies is present in Asia Pacific, Europe, and North America, offering a diverse global presence. The company collaborates with numerous global manufacturing giants. More than 35 traditional automotive OEMs, tier 1 suppliers, and more than 12 new energy vehicle companies make up Tata Tech’s clientele as of September 30, 2023. 

The client portfolio of Tata Technologies comprises its anchor clients, JLR and Tata Motors; top tier 1 suppliers and traditional OEMs, including Airbus, McLaren, Honda, Ford, and Cooper Standard; and new energy vehicle companies, including VinFast, among others, like Cabin Interiors and Engineering Solutions, ST Engineering Aerospace. 

Their key accounts are comprised of seven out of the top 10 and 12 of the top 20 global automotive ER&D spenders and five out of the 10 prominent new energy ER&D spenders globally, as mentioned in their RHP.

The company’s Technology solutions vertical include:

> Products and Value-Added Reselling (VAR), where the company supports clients in selecting and applying the right product development software from its partners to succeed in product manufacturing and market competition. 

> Educational offerings, where the company partners with universities and governments to prepare new engineers with industry-relevant skills and provides digital learning systems to corporations for their training requirements.

Tata Technologies’ Services vertical includes Engineering, Research, and Development (ER&D), where the company aids manufacturers in the inception, design, and enhancement of products using digital platforms. 

It also includes Digital Enterprise Services (DES), where the company assists manufacturers in identifying and implementing technological tools and solutions for better product manufacturing, servicing, and realization.

Tata Technologies IPO price band implies 1) EV/revenue of ~2.8x, 2) EV/EBITDA of ~15x, and 3) a P/E of ~21.4x based on FY26F financials. Tata Technologies’ peers (LTTS, TELX, KPIT and Cyient Ltd) trade at an average P/E of ~33x FY26F consensus EPS and ~23x average of LTTS & Cyient Ltd’s.

We expect US$ revenue/EBITDA (Rsm)/PAT (Rsm) CAGR of 13.6%/16.1%/15%, respectively, over FY23-26F. We recommend subscribing to the IPO given the long term opportunities in the Er&d segments of automotive, aerospace, size and scale to participate in the same and scope to improve margins & cash flow going ahead, InCred Equities said.

Downside includes client specific challenges in a high client concentration portfolio, significant growth in technology solutions which could limit potential margin expansion, it added.

The Tata Group’s much-awaited initial public offering (IPO) has created a record of attracting the highest number of applications on its issue among private sector companies, according to domestic brokerage Nuvama Institutional Equities. With 50.6 lakh applications till only the second day of its issue, Tata Technologies IPO has overtaken major private companies such as Zomato, Reliance Power, Nykaa (FSN E-Commerce Ventures), and others. Read full report here

“At the upper price band of ₹500, Tata Technologies is trading at 32.5x FY23 P/E multiple. Its peers are trading at a relatively expensive valuation with FY23 P/E multiple of 108.9x for KPIT, 68.5x for Tata Elxsi and 40.1x for LTTS. We believe, Tata Technologies is well placed to encash on the growth opportunities in ER&D space and looking at the relatively cheaper valuations, we recommend investors to SUBSCRIBE to the issue,” SBI securities said in its report

“The IPO is coming at a very attractive valuation of 32.5x, and it’s a great opportunity for investors. Thus, one should surely apply for this IPO for listing gain as well as for long-term benefits,” the brokerage firm said in a note.

Tata Motors Limited is the promoter of Tata Technologies. According to the company’s RHP report, Tata Motors Limited holds an aggregate of 262,844,816 equity shares, comprising 64.79% of the pre-offer issued, subscribed, and paid-up equity share capital of the company.

The company-listed peers include KPIT Technologies Limited, L&T Technology Services, and Tata Elxsi Limited. Among these, the company said it has the deepest automotive footprint among India-based ER&D players and has a balanced talent presence across offshore and onsite locations.

“Its strong brand legacy, extensive automotive expertise, diversified global presence and strategic partnership with industry leaders provide a distinct advantage that aligns well with its growth ambitions. Hence, we assign a “Subscribe” rating on a medium to long-term basis,” said Geojit Financial Services, a brokerage firm.

Brokerage firm Motilal Oswal Financial Services said it likes Tata Technologies and recommended ‘Subscribe’ given its niche presence, strong parentage and strategic partnership with marquee clients.

“This along with Tata Tech’s focus on diversifying its offerings and clients, puts it in a sweet spot to tap huge outsourcing opportunities in ER&D space. The IPO is attractively priced at 29x 1HFY24 P/E (on an annualized basis) which is at a discount to its peers. Tata Group is coming with an IPO after a gap of 19 years, catching investors fancy and hence could see listing gains as well,” said Motilal Oswal Financial Services.

Tata Technologies IPO GMP today, or grey market premium today, is ₹388 per share, which is 77.6% higher than the issue price, market observers said.

This indicates that the Tata Technologies shares are trading at a premium of 77% at ₹888 apiece in the grey market.

The company’s revenues are highly dependent on clients concentrated in the automotive segment. An economic slowdown or factors affecting this segment may have an adverse effect on its business, financial condition and results of operations, as per the RHP.

Tata Technologies derives a material portion of its revenues from its top 5 clients. The company is exposed to continued growth in top clients and any deterioration in client’s business may lead to slower growth.

Tata Technologies expects a significant amount of future revenue to come from new energy vehicle companies, many of whom may be startup companies.

The company had negative cash flows in the past and may continue to have negative cash flows in the future, which could adversely affect its liquidity and operations. For FY22 and the six-month period ended September 30, 2023, its net cash flow from operating activities was negative.

The company also faces a risk of exchange rate fluctuations in various currencies in which it does business.

“Tata Technologies is a pure-play manufacturing focused ER&D Company, primarily focused on the automotive industry with additional growth drivers including a heightened focus on smart manufacturing, reducing product development time and cost, connecting the digital thread and enhancing customer experience. As a subsidiary of Tata Motors Ltd (“TML”), they benefit from long-term relationships with both TML and JLR which strengthens to tap the large opportunity in automotive ER&D markets, adjacent verticals to tap the wide business network. Considering the healthy business prospects, strong parentage, superior financials with improvement in margins and ratios provides a valuation comfort. Therefore we recommend a SUBSCRIBE to the issue,” said Vikas Jain, senior research analyst at Reliance Securities.

Tata Technologies IPO subscription status is 14.85 times at 17:00 IST.

Tata Tech IPO’s retail investors portion has been subscribed 11.19 times, NII portion is subscribed 31.03 times, and Qualified Institutional Buyers (QIB) portion is booked 8.55 times. Employee portion has been subscribed 2.36 times Portion reserved for the shareholder has been booked 20.02 times.

Tata Technologies IPO has received bids for 66,87,31,680 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 14.67 times at 16:45 IST.

Tata Tech IPO’s retail investors portion has been subscribed 11.06 times, NII portion is subscribed 30.49 times, and Qualified Institutional Buyers (QIB) portion is booked 8.55 times. Employee portion has been subscribed 2.34 times Portion reserved for the shareholder has been booked 19.79 times.

Tata Technologies IPO has received bids for 66,07,16,400 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 14.31 times at 16:30 IST.

Tata Tech IPO’s retail investors portion has been subscribed 10.94 times, NII portion is subscribed 29.39 times, and Qualified Institutional Buyers (QIB) portion is booked 8.21 times. Employee portion has been subscribed 2.31 times Portion reserved for the shareholder has been booked 19.51 times.

Tata Technologies IPO has received bids for 64,43,39,610 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 14.03 times at 16:15 IST.

Tata Tech IPO’s retail investors portion has been subscribed 10.80 times, NII portion is subscribed 28.57 times, and Qualified Institutional Buyers (QIB) portion is booked 8.20 times. Employee portion has been subscribed 2.24 times Portion reserved for the shareholder has been booked 18.97 times.

Tata Technologies IPO has received bids for 63,19,54,410 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 13.75 times at 16:00 IST.

Tata Tech IPO’s retail investors portion has been subscribed 10.72 times, NII portion is subscribed 28.39 times, and Qualified Institutional Buyers (QIB) portion is booked 7.34 times. Employee portion has been subscribed 2.23 times Portion reserved for the shareholder has been booked 18.85 times.

Tata Technologies IPO has received bids for 61,91,07,840 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 13.59 times at 15:45 IST.

Tata Tech IPO’s retail investors portion has been subscribed 10.64 times, NII portion is subscribed 28.14 times, and Qualified Institutional Buyers (QIB) portion is booked 7.09 times. Employee portion has been subscribed 2.21 times Portion reserved for the shareholder has been booked 18.72 times.

Tata Technologies IPO has received bids for 61,21,65,780 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 13.32 times at 15:30 IST.

Tata Tech IPO’s retail investors portion has been subscribed 10.47 times, NII portion is subscribed 27.44 times, and Qualified Institutional Buyers (QIB) portion is booked 6.90 times. Employee portion has been subscribed 2.17 times Portion reserved for the shareholder has been booked 18.45 times.

Tata Technologies IPO has received bids for 59,97,95,850 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 13.11 times at 15:15 IST.

Tata Tech IPO’s retail investors portion has been subscribed 10.34 times, NII portion is subscribed 26.69 times, and Qualified Institutional Buyers (QIB) portion is booked 6.90 times. Employee portion has been subscribed 2.15 times Portion reserved for the shareholder has been booked 17.25 times.

Tata Technologies IPO has received bids for 59,04,64,200 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 12:49 times at 15:00 IST.

Tata Tech IPO’s retail investors portion has been subscribed 9.90 times, NII portion is subscribed 25.01 times, and Qualified Institutional Buyers (QIB) portion is booked 6.89 times. Employee portion has been subscribed 2.10 times Portion reserved for the shareholder has been booked 17.25 times.

Tata Technologies IPO has received bids for 56,23,91,550 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 12:28 times at 14:45 IST.

Tata Tech IPO’s retail investors portion has been subscribed 9.74 times, NII portion is subscribed 24.40 times, and Qualified Institutional Buyers (QIB) portion is booked 6.88 times. Employee portion has been subscribed 2.07 times Portion reserved for the shareholder has been booked 16:98 times.

Tata Technologies IPO has received bids for 55,28,63,190 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 12:14 times at 14:30 IST.

Tata Tech IPO’s retail investors portion has been subscribed 9.61 times, NII portion is subscribed 24.14 times, and Qualified Institutional Buyers (QIB) portion is booked 6.87 times. Employee portion has been subscribed 2.04 times Portion reserved for the shareholder has been booked 16:73 times.

Tata Technologies IPO has received bids for 54,67,23,330 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 11:82 times at 14:15 IST.

Tata Tech IPO’s retail investors portion has been subscribed 9.48 times, NII portion is subscribed 23.64 times, and Qualified Institutional Buyers (QIB) portion is booked 6.22 times. Employee portion has been subscribed 2.01 times Portion reserved for the shareholder has been booked 16:51 times.

Tata Technologies IPO has received bids for 53,21,84,550 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 11:66 times at 14:00 IST.

Tata Tech IPO’s retail investors portion has been subscribed 9.35 times, NII portion is subscribed 23.24 times, and Qualified Institutional Buyers (QIB) portion is booked 6.21 times. Employee portion has been subscribed 1.98 times Portion reserved for the shareholder has been booked 16:26 times.

Tata Technologies IPO has received bids for 52,48,79,190 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 11:09 times at 13:45 IST.

Tata Tech IPO’s retail investors portion has been subscribed 9.26 times, NII portion is subscribed 23.06 times, and Qualified Institutional Buyers (QIB) portion is booked 4.15 times. Employee portion has been subscribed 1.96 times Portion reserved for the shareholder has been booked 16:14 times.

Tata Technologies IPO has received bids for 49,93,24,830 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 10:97 times at 13:30 IST.

Tata Tech IPO’s retail investors portion has been subscribed 9.14 times, NII portion is subscribed 22.80 times, and Qualified Institutional Buyers (QIB) portion is booked 4.15 times. Employee portion has been subscribed 1.93 times Portion reserved for the shareholder has been booked 15.96 times.

Tata Technologies IPO has received bids for 49,39,88,250 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 10:66 times at 13:15 IST.

Tata Tech IPO’s retail investors portion has been subscribed 8.95 times, NII portion is subscribed 21.75 times, and Qualified Institutional Buyers (QIB) portion is booked 4.15 times. Employee portion has been subscribed 1.90 times Portion reserved for the shareholder has been booked 15.66 times.

Tata Technologies IPO has received bids for 48,02,34,060 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 10:49 times at 13:00 IST.

Tata Tech IPO’s retail investors portion has been subscribed 8.83 times, NII portion is subscribed 21.23 times, and Qualified Institutional Buyers (QIB) portion is booked 4.15 times. Employee portion has been subscribed 1.87 times Portion reserved for the shareholder has been booked 15.43 times.

Tata Technologies IPO has received bids for 47,23,87,350 shares against 4,50,29,207 shares on offer, according to data from the BSE.

Tata Technologies IPO subscription status is 10:41 times at 12:48 IST.

Tata Tech IPO’s retail investors portion has been subscribed 8.75 times, NII portion is subscribed 21.07 times, and Qualified Institutional Buyers (QIB) portion is booked 4.14 times. Employee portion has been subscribed 1.85 times Portion reserved for the shareholder has been booked 15.31 times.

Tata Technologies IPO has received bids for 46,87,62,060 shares against 4,50,29,207 shares on offer, according to data from the BSE.