Tata Technologies IPO price band set at Rs 475-500 per share

The anchor book of the offer will be opened for a day on November 21, the company announced.

Tata Technologies, the first company from the Tata Group launching IPO in nearly two decades, has set the price band for its maiden public issue at Rs 475-500 per share. Tata Consultancy Services was the last IPO from the group in 2004.

The public issue will open on November 22 and the closing date will be November 24. The anchor book will be opened for a day on November 21.

The Tata Motors' subsidiary is planning to raise Rs 3,042.51 crore via public issue at the upper price band. The issue comprises only an offer-for-sale (OFS) by the promoter and investors, and there is no fresh issue component.

Promoter Tata Motors will be offloading 4.62 crore equity shares worth Rs 2,313.75 crore in the OFS, while investors Alpha TC Holdings Pte Ltd will be selling 97.17 lakh shares worth Rs 485.84 crore, and Tata Capital Growth Fund I selling 48.58 lakh shares worth Rs 242.92 crore.

Hence, the company will not get any money from the issue.

The Pune-based global engineering services company has reserved 20.28 lakh shares for its employees and 60.85 lakh shares for the shareholders of Tata Motors. Hence, the IPO excluding shares reserved for employees and Tata Motors shareholders is the net issue.

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Half of the net offer size has been reserved for qualified institutional buyers, and 15 percent for high networth individuals. And the remaining 35 percent shares of the net offer are reserved for retail investors.

Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter. Retail investors can make a minimum investment of Rs 15,000 for 30 shares, and their maximum investment would be Rs 1.95 lakh (390 shares) as they are allowed to invest up to Rs 2 lakh in the IPO.

Earlier on October 25, promoter Tata Motors sold 3.65 crore equity shares to TPG Rise Climate SF Pte Ltd at Rs 401.81 per share, amounting to Rs 1,467 crore. The issue price of Rs 500 (upper price band) is 24.4 percent higher over the price at which TPG bought shares of Tata Technologies, as per the price band advertisement published in the newspapers.

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Tata Technologies that offers product development and digital solutions to global original equipment manufacturers and their tier-1 suppliers has recorded a massive 42.8 percent on-year growth in consolidated net profit at Rs 624 crore for the year ended March FY23 and 25 percent increase in revenue from operations at Rs 4,414.2 crore during the same period.

In the six months period ended September FY24, profit surges 36 percent to Rs 351.9 crore and revenue increased by 34 percent to Rs 2,526.7 crore compared to year-ago period.

JM Financial, Citigroup Global Markets India and BofA Securities India are the merchant bankers to the issue.