The highly anticipated Tata Technologies IPO is on the brink of commencement, with the subscription window opening from November 22, 2023, to November 24, 2023. Investors and market enthusiasts are eagerly awaiting this offering from the revered Tata Group, and one phrase that echoes loudly in market discussions is Tata Technologies IPO GMP Today. Before getting into the GMP of the IPO, let us look at some of the prominent parameters of this IPO.
Table of Contents
Tata Technologies Business Model
Tata Technologies operates on a robust and diversified business model that encompasses a broad spectrum of services within the realms of engineering, design, and technology solutions. Initially established as Tata Motors’ design unit, the company has evolved into an independent entity with a multi-faceted approach.
The core of Tata Technologies’ business model lies in providing comprehensive services to automotive, aerospace, and industrial machinery original equipment manufacturers (OEMs). With a focus on product lifecycle management, manufacturing, and IT service management, the company has positioned itself as a one-stop solution provider for its clients. Strategic acquisitions, such as the integration of INCAT International and Cambric Corporation, have allowed Tata Technologies to expand its capabilities and diversify its portfolio.
The global presence, with headquarters in Pune, India, and regional hubs in the United States and Europe, reflects a commitment to serving a diverse clientele. Despite the challenges, including the attempted stake sale in 2017, Tata Technologies has showcased resilience and adaptability, remaining a key player in shaping the future of engineering and design services worldwide.
Categories and Reservations of Tata Technologies IPO
In a strategic move, Tata Technologies is set to sell 6,08,50,278 equity shares through the Offer for Sale (OFS) route, aiming to raise an impressive Rs 3,042.51 crore. This IPO caters to a diverse investor base, with categories reserved for qualified institutional investors, non-institutional investors (above Rs 2 lakh), retail investors (up to Rs 2 lakh), shareholders of Tata Motors Ltd (TML), and eligible employees of Tata Tech. The flexibility for individual investors is notable, allowing them to apply in multiple categories. The phrase Tata Technologies IPO GMP Today gains relevance as investors explore diverse strategies across these categories.
Tata Technologies IPO Details
| Details | Information |
|---|---|
| IPO Date | November 22, 2023, to November 24, 2023 |
| Listing Date | December 5, 2023 |
| Face Value | ₹2 per share |
| Price Band | ₹475 to ₹500 per share |
| Lot Size | 30 shares |
| Total Issue Size | 60,850,278 shares (₹3,042.51 Cr) |
| Offer for Sale | 60,850,278 shares (₹3,042.51 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding Pre Issue | 405,668,530 |
| Shareholding Post Issue | 405,668,530 |
Tata Technologies IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Tata Technologies IPO Timeline
| Event | Date |
|---|---|
| IPO Open Date | Wednesday, November 22, 2023 |
| IPO Close Date | Friday, November 24, 2023 |
| Basis of Allotment | Thursday, November 30, 2023 |
| Initiation of Refunds | Friday, December 1, 2023 |
| Credit of Shares to Demat | Monday, December 4, 2023 |
| Listing Date | Tuesday, December 5, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 24, 2023 |
Tata Technologies IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 30 | ₹15,000 |
| Retail (Max) | 13 | 390 | ₹195,000 |
| S-HNI (Min) | 14 | 420 | ₹210,000 |
| S-HNI (Max) | 66 | 1,980 | ₹990,000 |
| B-HNI (Min) | 67 | 2,010 | ₹1,005,000 |
Tata Technologies IPO Promoter Holding
| Share Holding Type | Percentage |
|---|---|
| Share Holding Pre Issue | 66.79% |
| Share Holding Post Issue | 55.39% |
Eligible employees, holding Tata Motors shares, have the opportunity to apply under three categories – as an employee, a TML shareholder, and either a retail or non-institutional investor. There is, however, a cap on allotment, restricting employees to shares worth a maximum of Rs 5,00,000. Similarly, TML shareholders can bid under two categories – TML shareholders and either the non-institutional or retail quota.
Financial Performance:
Founded in 1994, Tata Technologies has evolved into a global engineering services powerhouse, specializing in product development and digital solutions. The commitment to manufacturing-led verticals like automotive, aerospace, and heavy construction machinery positions the company as a key player. Financially, Tata Technologies has seen a remarkable 25.81% increase in revenue and an impressive 42.8% surge in Profit After Tax (PAT) between March 31, 2022, and March 31, 2023.
Tata Technologies Financial Summary (Restated Consolidated)
| Period Ended | Assets (₹ Crore) | Revenue (₹ Crore) | Profit After Tax (₹ Crore) | Net Worth (₹ Crore) | Reserves and Surplus (₹ Crore) |
|---|---|---|---|---|---|
| 30 Sep 2023 | 5,142.42 | 2,587.42 | 351.90 | 2,853.13 | 2,455.29 |
| 31 Mar 2023 | 5,201.49 | 4,501.93 | 624.04 | 2,989.47 | 2,605.60 |
| 31 Mar 2022 | 4,218.00 | 3,578.38 | 436.99 | 2,280.16 | 2,028.93 |
| 31 Mar 2021 | 3,572.74 | 2,425.74 | 239.17 | 2,142.15 | 1,897.46 |
Tata Technologies Key Performance Indicators (KPIs)
| KPI | Value |
|---|---|
| P/E (x) | 32.53 |
| Market Cap | ₹20,283.43 |
| EPS (Rs) | ₹15.37 |
| RoNW | 20.87% |
Investors and market enthusiasts are closely watching the Tata Technologies IPO, boasting a market cap of Rs 20,283.43 Crores, a Price-to-Earnings ratio (P/E) of 32.53, an Earnings Per Share (EPS) of Rs 15.37, and a Return on Net Worth (RoNW) of 20.87%. The frequent mention of Tata Technologies IPO GMP Today in discussions reflects the heightened anticipation and interest surrounding this IPO.
Investor Interest and Grey Market Premium (GMP)
The Tata Technologies IPO has triggered a notable surge in the Grey Market Premium (GMP). Despite the subdued market sentiments, the GMP skyrocketed from approximately Rs 240 to Rs 375 in just two days, indicating robust investor interest even before the IPO opens for subscription.
| Date | GMP (Tentative) |
|---|---|
| 30 October | ₹260 |
| 1 November | ₹260 |
| 2 November | ₹260 |
| 3 November | ₹260 |
| 4 November | ₹260 |
| 5 November | ₹260 |
| 6 November | ₹260 |
| 7 November | ₹260 |
| 8 November | ₹260 |
| 9 November | ₹260 |
| 10 November | ₹260 |
| 11 November | ₹260 |
| 12 November | ₹260 |
| 13 November | ₹260 |
| 14 November | ₹260 |
| 15 November | ₹290 |
| 16 November | ₹310 |
| 19 November | ₹360 |
As Tata Technologies IPO GMP Today becomes a focal point in market discussions, it is crucial to approach GMP with caution. While it can reflect investor enthusiasm, it is speculative and lacks regulation. This premium might not necessarily correlate with the company’s financial health. Prudent investors are advised to conduct thorough due diligence, focusing on the company’s fundamentals before making investment decisions.
Tata Technologies IPO Timeline
Investors are marking their calendars for the Tata Technologies IPO, scheduled to open on November 22, 2023, and close on November 24, 2023. The timeline includes the basis of allotment on November 30, 2023, initiation of refunds on December 1, 2023, credit of shares to demat on December 4, 2023, and the listing on December 5, 2023. The phrase Tata Technologies IPO GMP Today is set to echo across trading floors and investor circles, symbolizing the current market sentiment.
Expert Reviews and Recommendations
Leading analysts and industry experts express positive sentiments about the Tata Technologies IPO, considering it an attractive investment against its peers like Tata Elxsi, KPIT Technologies, and L&T Technology Services. Dilip Davda highlights the historical significance of the “TATA” tag, making it a compelling choice for investors eyeing medium to long-term rewards.
This table offers a comprehensive view of key financial parameters, allowing investors to make informed decisions. The phrase Tata Technologies IPO GMP Today is a reminder of the dynamic market conditions and the anticipation surrounding this IPO.
Conclusion – Tata Technologies IPO GMP Today:
In conclusion, the Tata Technologies IPO holds immense promise and has generated substantial investor interest, as evidenced by the rising Grey Market Premium. This IPO marks Tata Group’s return to the public market after a gap of 20 years, making it a significant event. Investors looking for exposure to a leading engineering services company backed by the reputable Tata brand should carefully consider the Tata Technologies IPO.
As the phrase Tata Technologies IPO GMP Today reverberates through market discussions, it underscores the growing excitement and anticipation surrounding this upcoming public offering. The focus word not only captures the current market sentiment but also emphasizes the relevance of Grey Market Premium in assessing investor interest and shaping investment decisions.
Extended Analysis:
Tata Technologies IPO and Industry Trends: A deeper analysis of industry trends reveals that Tata Technologies is strategically positioned in manufacturing-led verticals like automotive, aerospace, and heavy construction machinery. The focus on digital solutions and product development aligns with the evolving needs of these industries, making Tata Technologies a key player in the global engineering services sector.
Regulatory Framework and Investor Caution: It is imperative to highlight the regulatory framework surrounding Grey Market Premium. While GMP serves as an indicator of market sentiment, investors should exercise caution. The phrase Tata Technologies IPO GMP Today should not be the sole basis for investment decisions. Regulatory authorities encourage investors to conduct thorough due diligence, considering company fundamentals and market dynamics.
Investment Strategies and Diversification: The flexibility provided by Tata Technologies, allowing investors to apply in multiple categories, opens avenues for diverse investment strategies. The phrase Tata Technologies IPO GMP Today becomes a guiding beacon for investors exploring these strategies. Diversification across categories can enhance the risk-return profile of an investor’s portfolio.
Historical Significance and Investor Confidence: The historical significance of the “TATA” tag is a factor that resonates with investors. The trust and confidence associated with the Tata Group contribute to the overall appeal of the Tata Technologies IPO. Investors recognize the legacy and values embedded in the brand, making it a compelling choice for long-term investments.
Market Dynamics and Future Outlook: As the Tata Technologies IPO approaches, market dynamics are evolving, and the future outlook and price target of Tata Technologies share is subject to various factors. The phrase Tata Technologies IPO GMP Today encapsulates the current snapshot of market dynamics. Investors keen on understanding these dynamics and making informed decisions will closely monitor the GMP.
Recommendations from Market Experts: Expert reviews and recommendations play a crucial role in guiding investor decisions. Dilip Davda’s positive outlook on the Tata Technologies IPO reinforces the potential for medium to long-term rewards. The phrase Tata Technologies IPO GMP Today gains prominence as market experts align their views with the current market sentiment.
In conclusion, the Tata Technologies IPO emerges not just as a financial event but as a reflection of market dynamics, investor sentiment, and industry trends. The phrase Tata Technologies IPO GMP Today serves as a focal point, capturing the essence of current market discussions and investor interest. As the IPO unfolds, investors will navigate through diverse categories, assess industry trends, and make decisions guided by the historical legacy of the Tata Group.
The focus on Grey Market Premium adds a layer of complexity to investor decisions, urging caution and thorough due diligence. The phrase Tata Technologies IPO GMP Today acts as a reminder of the dynamic nature of the market and the need for investors to stay informed. As the IPO subscription period unfolds, market participants will witness the culmination of anticipation, analysis, and investor decisions shaping the trajectory of Tata Technologies in the public market. Read other articles related to Tata Technologies Share Price Target for 2024, 2025 and beyond from our next blog.
Note: The information provided in this article is based on available data as of the last knowledge update in January 2023. Market conditions and company dynamics may have changed since then. Always refer to the latest financial reports and consult with financial experts for the most accurate and up-to-date information.
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