Tata Technologies IPO: Issue subscribed over 69 times on final day

IREDA IPO Listing Price NSE, BSE LIVE Updates: Tata Technologies IPO allotment status

Meanwhile, there is a lot of buzz around Tata Technologies IPO. The Rs 3,042.5 crore IPO got subscribed 69.43 times on the final day of subscription on Friday. 

Tata Technologies shares to enter listed space on December 1; what can you expect?

Prashanth Tapse of Mehta Equities is of the view that Tata Technologies could see a strong listing gain of over 75 per cent given the overwhelming subscription demand and its investor-friendly pricing. "There is a high possibility that Tata Technologies can be a doubler candidate post-listing. We believe the super listing premium is justified mainly on the back of the Tata parentage tag that enjoys first preference among investors and its unique well established global business model which has been generating healthy margins in the sector it serves," says Tapse.

Tapse recommends winning bidders to book 50 per cent profits over and above the brokerage's expectations and retain the rest of the holding for the long term. The analyst suggests losing bidders to accumulate the stock Tata Technologies on dips from a long-term perspective.

Tata Technologies IPO LIVE updates

Total Subscription - 69.43x

QIB – 203.41x

NII – 62.11x - {(NII 10L+) – 70.67x, (NII 2L-10L) - 44.98x},

Retail – 16.50 {(Employee Reservation) – 3.70x, (Shareholder Reservation) - 29.19x},

Tata Technologies IPO LIVE | Issue subscribed more than 69 times on final day so far

As of 4:30 pm, the Tata group IPO has received bids for as many as 312.4 crore shares as against the 4.5 crore shares on offer, with robust interest from all categories of investors, according to provisional exchange data. 

Tata Technologies IPO Enters Last Day | Issue subscribed more than 15 times so far; retail portion booked nearly 12 times

As of 10:06 am, the issue has received bids for 69.5 crore shares as against the 4.5 crore shares on offer, marking a subscription of 15.4 times, according to provisional exchange data. 

Tata Technologies IPO LIVE | First Tata group public offer in nearly two decades subscribed 14.9 times on Day 2; retail portion booked over 11 times

At the end of bidding on Thursday, the second day of the book-building process, the IPO received bids for 66.9 crore shares as against the 4.5 crore shares on offer, according to provisional exchange data. 

Tata Technologies LIVE Today | First Tata group issue in 19 years all set to enter last day of bidding process today

The Tata Tech IPO, comprising an offer for sale (OFS) worth Rs 3,042.5 crore, opened for subscription on Wednesday, November 22. 

Today is the last day to participate in the public offer of Tata Technologies, a subsidiary of the Tata group auto major Tata Motors.

Potential investors can bid for Tata Technologies shares in a price band of Rs 475-500 apiece, in lots of 30 shares, between 10 am and 5 pm today. 

Tata Technologies IPO LIVE | Issue subscribed overall 11 times; retail portion booked 9.2 times

As of 1:39 pm, the Tata Tech IPO has received bids for 49.7 crore shares as against the 4.5 crore shares on offer, according to provisional exchange data.   

Tata Technologies IPO LIVE | Tata group company said its FY23 performance surpassed its expectations 

Tata Technologies generated strong revenue and operating profit during the course of the year, with expansion in operating margins and cash flows, according to its annual report.

Its operating margin improved by 31 bps on a year-on-year basis to 18.6 per cent for the year ended March 2023.

Its cash position improved from Rs 1,411.6 crore in the financial year 2021-22 to Rs 1,480.7 crore the following year.

The growth in its revenue from services was amongst the highest in its market, according to the annual report.  

Tata Technologies IPO LIVE | Here's how the Tata group company fared in 2022-23 

Tata Technologies registered 25.1 per cent growth in revenue to Rs 4,414.18 crore in the financial year ended March 2023. Revenue from the sale of services increased 33.2 per cent to Rs 3,535.2 crore, according to the company's annual report. 

The strong growth in revenue was despite macroeconomic challenges, the company said. 

Its profit after tax (PAT) increased 42.8 per cent to Rs 624 crore for the year. 

Tata Technologies IPO LIVE | Issue subscribed 8.4 times so far on Day 2; retail portion booked 7.2 times, NII 15.5 times

As of 10:48 am, the IPO has received bids for a total of 37.6 crore Tata Technologies shares as against the 4.5 crore shares on offer, according to provisional exchange data. Here's how various types of investors have responded to the issue so far:

Tata Technologies IPO LIVE | Bidding for second day of bidding process to start at 10 am

The Tata Technologies IPO is all set to the second day of the bidding process in about 50 minutes from now, from 10 am to 5 pm.

Teh subscription window will be available for one more day, on Friday, November 24.   

Tata Technologies IPO LIVE | Tata Tech another attractive play in auto ER&D services, says IIFL Securities 

Under the IPO, Tata Technologies is available at a discount to its peers, according to IIFL Securities. The IPO valuation implies a trailing PE of 28 times as against 30-90 times for pure-play India-based peer ER&D service providers, the brokerage said in a research note.

"We believe that industry tailwinds for the automotive industry are likely to continue to drive growth for the company in the medium term, while expansion into adjacencies provides upside risks. We recommend subscribing to the IPO, given the valuation discount to peers," said IIFL Securities, which had assigned a 'subscribe' rating to the Tata group issue. 

Tata Technologies IPO LIVE | What does Tata Tech do?

Tata Technologies (TTECH) is a major ER&D services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their Tier 1 suppliers.

The company, TTECH, has the second largest auto industry practice among pure-play Indian ER&D services players, after KPIT Tech, and works with seven of the top 10 automotive ER&D spenders, analysts at brokerage IIFL Securities wrote in a research note ahead of the launch of the IPO. 

With revenues of $550 million in FY23, Tech Technologies’ revenues have grown at 11 per cent CAGR over FY20-23, with EBIT margins of 16.5 per cent in FY23, according to the brokerage.

Image: Reuters

Tata Technologies IPO LIVE: Deep domain expertise in the automotive industry 

The company has deep domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as Aerospace and Transportation and Construction Heavy Machinery (TCHM). 

Tata Technologies IPO LIVE: Deep domain expertise in the automotive industry 

The company has deep domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as Aerospace and Transportation and Construction Heavy Machinery (TCHM). 

Tata Technologies IPO LIVE: Subscription status is 6.55 times at 5 pm

  
Tata Tech IPO has been subscribed 6.55 times till 5:00 pm. The Non-Institutional Investors (NIIS) portion has been subscribed 11.69 times and Retail Individual Investors (RIIs) got subscribed 5.44. The Qualified Institutional Buyers (QIBs) got subscribed 4.08 times.  

Tata Technologies IPO LIVE: Subscription status is 6.39 times at 4:42 pm

Tata Technologies IPO LIVE: QIB portion booked 4.02 times

Tata Tech IPO's Qualified Institutional Buyers (QIB) portion is booked 4.02 times till 4:42 pm.  

Tata Technologies IPO LIVE | KPIT Tech shares fall nearly 13% in two days

KPIT Technologies (KPITTECH) shares fall by as much as Rs 91.4, or 6.1 per cent, to Rs 1,415 apiece on BSE, taking their losses to 12.8 per cent in two back-to-back sessions.

The stock has taken a pause after a stellar run over the past few months, with a six-month return of more than 50 per cent. 

KPIT Tech's valuation is way more expensive than Tata Technologies', according to Zee Business research. 

In the first six months of the current financial year, the auto vertical has contributed 96 per cent to KPIT Tech's overall revenue, as against Tata Tech's 88 per cent. 

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Tata Technologies IPO LIVE | Tata group's first IPO in 19 years subscribed 3.6 times so far on Day 1

As of 1:33 pm, the IPO has received bids for 16.4 crore shares, marking a subscription of 3.6 times the equity on offer, according to provisional exchange data. 

Tata Technologies IPO LIVE | Global recovery, strong domestic business to drive growth for Tata Technologies, says Ventura Securities 

Brokerage Ventura Securities expects Tata Technologies to stage a strong financial performance in the coming years. The brokerage has cited the following key points as rationale behind its positive view on the Tata group company:

• Gradual recovery in the global economy
• Rising manufacturing capex
• Shift in manufacturing from the US, Europe and China to India due to cost inflation and China Plus One strategy

According to Ventura, at the upper end of the price range of the IPO, Tata Technologies is valued at a trailing 12-months (TTM) PE of 28.3 times. The brokerage has assigned a 'subscribe' rating to the issue.  

Tata Technologies IPO LIVE | Issue subscribed 2.5 times so far on Day 1

By noon, the IPO is subscribed 2.5 times, according to provisional exchange data.

Tata Technologies IPO LIVE | Issue subscribed 1.8 times so far on Day 1; retail portion booked 1.5 times

As of 11:12 am, the IPO of Tata Technologies has received bids for 8.2 crore shares as against the 4.5 crore shares on offer, an overall subscription of 1.8 times.

The portion set aside for non-institutional investors (also known as high net worth individuals) has been booked 2.5 times so far.  

Tata Technologies IPO LIVE | Tata group company well placed to encash growth opportunities in ER&D space, says SBI Securities

According to SBI Securities, which has assigned a 'subscribe' rating to the Tata Technologies issue, the issue is floated at a price-to-earnings multiple of 32.5 times FY23 earnings at the upper end of the price band. Its peers are trading at relatively expensive valuations, with an FY23 PE multiple of 108.9 times for KPIT, 68.5 times for Tata Elxsi and 40.1 times for LTTS, according to the brokerage.

"We believe Tata Technologies is well placed to encash on the growth opportunities in ER&D space and looking at the relatively cheaper valuations," SBI Securities wrote in a research report dated November 20. 

Tata Technologies IPO LIVE | Issue fully subscribed in less than 40 minutes of bidding process

The IPO is fully subscribed so far within the first few minutes of the bidding process. As of 10:36 am, the IPO has received bids for 4.9 crore shares as against the 4.5 crore shares on offer, a subscription of 1.1 times, according to provisional exchange data. 

Here's how different types of investors have responded to the issue so far:

Tata Technologies IPO opens for subscription, booked 1% within minutes

As of 10:06 am, the first public offer from the Tata group has received bids for 6.5 lakh shares, translating into a subscription of one per cent given the 4.5 crore shares on offer. 

Tata Technologies IPO LIVE | Public offer reasonably priced compared to peers, says Geojit Financial Services

According to Geojit Financial Services, Tata Technologies is available at a price-to-earnings (PE) multiple of 28.8 times at the upper end of the price range, which appears to be reasonably priced. 

The company's 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, according to the brokerage, which recommends subscribing to the issue from a medium to long-term perspective.

Tata Technologies IPO LIVE | Should you subscribe to the first Tata group IPO in nearly two decades? Here's what market wizard Anil Singhvi recommends

Zee Business Managing Editor Anil Singhvi suggests applying for the Tata Technologies IPO for a big listing gain and for the long term. He has pointed out the following key points about the Tata group company: 

Positive:

• Strong and experienced promoters
• Deep relationship with clients across globe
• Strong digital and technology skills
• Debt-free company with strong cash flow
• Impressive financial track record
• Strong growth prospects
• Very attractive valuations
• Stock may double very soon

Negative

• One-third business from Tata group
• Few group companies operate in similar business

Tata Technologies IPO LIVE | First Tata group public offer in 19 years comes amid a rush of primary market offerings on D-Street

It has been a busy year on Dalal Street in terms of IPOs. 

The country's capital market has had a record 194 IPOs so far in 2023. During this period, domestic equity benchmarks have hit a series of record highs as the country's economic growth prospects and a vast consumer base make it an attractive prospect for companies and investors.

Image: Freepik

Tata Technologies IPO LIVE | Take a look at Tata Motors subsidiary's results

For the six months to September 30, 2023, Tata Technologies registered a consolidated profit of Rs 352 crore, an increase of about 36 per cent on a year-on-year basis, while its revenue grew nearly 34 per cent.

Tata Technologies IPO LIVE | First Tata group IPO in nearly two decades

The last company of the salt-to-software conglomerate was Tata Consultancy Services, in 2004.

TCS is now the country's top IT services firm.

Tata Technologies IPO LIVE | What does Tata Motors subsidiary Tata Tech do?

Tata Technologies provides engineering and technology services to auto, aero and heavy machinery makers.

Businesses across automotive, aerospace, industrial heavy machinery and other industries work with Tata Technologies to conceptualise, develop and realise safer, more sustainable products and experiences that improve people’s lives, according to the company's website, tatatechnologies.com. 

Tata Technologies has a workforce of more than 12,000 innovators, and operates 19 global delivery centers in three continents: Asia-Pacific, Europe and North America. 

Tata Technologies IPO Subscription LIVE: Investors can bid for a minimum of 35 equity shares  

Investors can bid for a minimum of 35 equity shares and in multiples thereof. The issue will fetch Rs 2,890.4 crore and Rs 3,042.5 crore at the lower and upper end of t

Tata Technologies IPO Subscription LIVE: Anchor book will open on November 21

The anchor book of the offer will be opened for a day on November 21, according to a public announcement.

Tata Technologies IPO Subscription LIVE: TCS was the last IPO from Tata Group

This will be the first company from the Tata Group to float an initial share sale in nearly two decades. Tata Consultancy Services was the last IPO from the group in 2004.

Tata Technologies IPO Subscription LIVE: IPO is entirely an OFS 

The IPO of Tata Motors' arm is entirely an offer for sale (OFS) of 6.08 crore (6,08,50,278) equity shares.
Under the OFS, Tata Motors will offload an 11.4 per cent stake, private equity firm Alpha TC Holdings will sell a 2.4 per cent stake, and Tata Capital Growth Fund I will do away with 1.2 per cent of shareholding.