Tata Tech IPO: Check likely price band, issue date, company financials, more

Tata Technologies IPO is entirely an offer-for-sale of 6.08 crore shares

The much-awaited initial public offering of Tata Technologies is set to open on November 22. Investors are excited about the first IPO by the Tata Group in nearly two decades after TCS went public in 2004.

The public offer will close on November 24. The price band of Tata Technologies' public issue is expected to be between Rs 550 and 650 per share, according to Avinash Gorakshakar, Director of Research at ProfitMart Securities.

The public offer is entirely an offer-for-sale of 6.08 crore shares, which is 15 percent of the paid-up capital. The OFS will comprise the sale of up to 4.63 crore equity shares by group company Tata Motors, up to 9.72 crore shares by Alpha TC Holdings Pte Ltd, and up to 4.86 crore shares by Tata Capital Growth Fund I, representing up to 11.41 percent, 2.40 percent, and 1.20 percent, respectively, of the paid-up equity share capital of Tata Technologies.

Also Read: Come Nov 22, Tata Technologies to be first Tata Group firm to go public in nearly 20 years

Since the offer is entirely an OFS, Tata Technologies will not receive any money from this issue. Instead, all the proceeds will go to the selling shareholders.

When Tata Tech filed DRHP earlier this year, the company intended to sell 9.57 crore shares, representing 23.6 percent of the paid-up capital. However, the offer size was cut after Tata Motors sold a 9.9 percent stake in Tata Tech to investors led by private equity major TPG in October. This valued the company at about Rs 16,300 crore.

Also Read: Tata Technologies IPO: Company in talks with Morgan Stanley, Blackrock, US hedge funds

Tata Technologies’ revenue growth and profit growth slowed in FY23 as compared to FY22. Revenue for FY23 grew 25 percent to Rs 4,418 crore, while profit after tax was up 63 percent at Rs 708 crore.

In October, the company's unlisted share price shot up after Moneycontrol reported that Tata Technologies was intending to go public in November. “Tata Technologies unlisted shares, which were previously trading at a modest Rs 90-100 in 2020, surged to approximately Rs 900 in October," Manan Doshi, co-founder of Unlisted Arena, had said. On the current stock price, Doshi said that the shares are now locked in the unlisted market and are not available for trading.

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